Cardinal Health 2013 Annual Report Download - page 5

Fiscal 2014 — moving forward, stronger
We enter scal 2014 with a solid foundation and strong
momentum in both of our segments.
For the Pharmaceutical Segment in 2014, we expect
revenues to decline, primarily due to the expiration of the
Walgreens contract, but our eorts to strengthen the overall
portfolio will continue to bear fruit. You will see a continued
emphasis on building generic scale and capabilities as
we further enhance our ability to move market share for
our manufacturer partners and to assure best-in-class
availability, quality and pricing for our customers. As a result,
we look for continued improvement in generics protability
and overall segment margin due to utilization, customer
and product mix, and program strength.
We also see opportunities to grow both our specialty
and biopharma businesses through innovation and new
business models that create additional value for providers
and manufacturers who focus on high-touch, high-cost
disease areas. This will include the continued introduction
of new technology solutions, such as our Pathware tool that,
along with payor and physician collaboration, can create
standardized clinical pathways to improve the quality and
the cost of caring for patients with complex diseases.
We will continue to strengthen our oerings to our
independent pharmacy customers in scal 2014. The focus
will remain on providing the latest products, tools and
technologies available to help these critical members of
the healthcare system improve patient care, eciency and
protability of their businesses. And we will increasingly
bring our experience to hospital systems that can benet
from our expertise in clinical pharmacy.
Switching to our Medical Segment, our ability to serve
across the continuum of care with a broad line of products
and services has never been more important. We are
working closely with our diverse set of customers and
manufacturers to help them thrive in a changing landscape.
Our preferred products portfolio will be ramping up in
scal 2014. You will see accelerated new product
introductions designed to bring quality, value and enhanced
clinical benets to our customers throughout the year.
We know there are signicant opportunities to increase our
services to hospitals, ambulatory settings and the home. And we
will be aggressively pursuing the cross-enterprise opportunities
that leverage the AssuraMed acquisition and our supply chain
management expertise.
We will continue to grow internationally. China, in particular, is
a market with enormous potential. We look for another year of
strong revenue and prot growth as we continue to expand our
geographic footprint and add new business partnerships and
programs in areas such as consumer health and direct-to-patient
distribution. As we continue to grow our “direct-to-patient”
specialty pharmacy business there, our brand will become more
important not only to healthcare providers but to consumers as
well. We believe we have already built strong equity as a trusted
partner — a partner who can oer strong and compliant business
practices that are critical in this transforming marketplace.
A thank you
As I end this letter, I want to express my deep appreciation to
our employees and to our customers, our supplier partners and
our shareholders, who have supported us through a year which
had more than its share of twists and turns and from which we
emerge stronger and more condent in our future.
I’ll end with a reminder that the notion of being “essential to care”
is not just a tagline to us — it’s what drives us.
Sincerely,
George S. Barrett
Chairman and CEO
Cardinal Health, Inc.
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