(Reuters) -Cardinal Health said on Tuesday it expects annual profit to be at the higher end of its previous forecast range, primarily driven by strong demand for costly specialty medicines and branded drugs at its pharmaceuticals unit.
Drug distributors in the United States are expanding their presence in the market for specialty medicines, which treat complex conditions such as rheumatoid arthritis and cancer, due to their high profit margins.
Cardinal said in November it anticipates increased demand for specialty medicines and GLP-1 weight-loss drugs. The company would evaluate additional opportunities in specialty medicines, it had then said.
While announcing the first-quarter results, the company had forecast an adjusted profit per share of $7.75 to $7.90 for the fiscal year ending June 2025. Analysts on average expect $7.84 per share, according to data compiled by LSEG.
Cardinal’s forecast came ahead of a presentation at the JPMorgan Healthcare Conference, where the company is expected to provide more comments.
(Reporting by Christy Santhosh in Bengaluru; Editing by Shilpi Majumdar)
