Cardinal Health Archives - Medical Design Sourcing

Cardinal Health CEO becomes one of medtech’s top-paid executives

Cardinal Health disclosed pay and perks for other leaders and its median employee, as well as severance payouts for two former top executives.

Cardinal Health CEO Jason Hollar [Photo courtesy of Cardinal Health]

Cardinal Health paid CEO Jason Hollar nearly $18.8 million in his first year on the job, the device manufacturer and pharmaceutical distrbutor said in a new executive pay disclosure.

That makes Hollar — who was Cardinal Health’s chief financial officer until his promotion in September 2022 — the second-highest-paid CEO among the world’s largest medical device manufacturers.

Abbott CEO Robert Ford is the top-paid CEO of all medical device manufacturers at $21.7 million in total compensation. Like Cardinal Health, Abbott also has a major pharmaceutical business, but Abbott does not disclose pay for Medical Devices EVP Lisa Earnhardt.

Hollar’s total compensation for fiscal 2…

Medical device reprocessing design tips from Cardinal Health’s Sustainable Technologies

Medical device reprocessing includes mechanical, chemical and/or electrical processes. [Photo courtesy of Cardinal Health Sustainable Technologies]

Medical device reprocessing is a key focus for Cardinal Health’s Sustainable Technologies business, which collects and cleans single-use devices for safe re-use under FDA standards.

Reprocessed devices keep medical waste out of landfills while offering significantly lower costs than brand-new products for hospitals and other healthcare customers, according to the Association of Medical Device Reprocessors.

Meg McClanahan, chair of the Association of Medical Device Reprocessors Board and global portfolio director for Cardinal Health’s Sustainable Technologies business, offered some advice for designing medical devices for reprocessing.

Previously: Cardinal Health expands single-use device reprocessing facility

What advice can Cardinal He…

FDA updates medical device shortage list due to shipping delays and semiconductors

Medical device shortages persist due to shipping delays and semiconductor availability, the FDA said last week in an update to its medical device shortage list.

The updated medtech products in short supply include radiological devices, general plastic surgery devices, cardiac diagnostic and monitoring products, general ICU/ hospital products, specimen collection supplies and ventilators.

Philips Invivo MRI breast biopsy grid plates

Philips product shipping delays caused a shortage of magnetic resonance imaging (MRI) breast biopsy grid plates used with breast biopsy/localization trays, surgical guide needles and specialty magnetic resonance coils.

Those Philips Invivo MRI breast biopsy grid plates have been on the shortage list since October 2022 after imaging facilities notified the FDA of the shortage in July. The FDA said it does not know how long the shortage will last, but said it “is still compiling and evaluating data on manufacturing and pro…

Cardinal Health pharmaceutical segment grows sales 15% in Q2

Cardinal Health (NYSE: CAH) today posted second-quarter results that beat the overall consensus on Wall Street.

The Dublin, Ohio-based company reported losses of $130 million, or 50¢ per share, on sales of $51.5 billion for the three months ended December 31, 2022. Cardinal Health’s results swung to a loss versus the same quarter a year ago. During Q2 2022, it earned $49 million, or 17¢ per share.

Sales in the most recent quarter were up 13%.

Adjusted to exclude one-time items, earnings per share were $1.32, 18¢ ahead of The Street, where analysts were looking for sales of $50.74 billion.

“Our second quarter results demonstrate continued momentum against our plans, led by better-than-expected performance in the Pharmaceutical segment and Medical results in-line with our prior commentary,” CEO Jason Hollar said in a news release. “With the first half of fiscal year 2023 behind us, we are pleased to raise our full-year non-GAAP EPS…

Cardinal Health, Palantir partner on AI for pharmaceutical products

Cardinal Health (NYSE:CAH) announced that it entered into a strategic collaboration with Palantir Technologies (NYSE:PLTR).

The partnership pairs the companies to design a solution to give health systems and hospitals dynamic purchase decision insights. These insights help them quickly improve their bottom line.

Dublin, Ohio-based Cardinal Health plans to integrate this solution into Foundry, Palantir’s operating system. The companies intend to deploy AI and machine learning to bring together diagnosis and clinical data with real-time customer purchasing and consumption data for pharmaceutical products. They also expect to use future iterations to inform purchasing decisions for therapeutic utilization, reimbursement insights and predictive drug inventory needs.

According to a news release, the solution helps to improve the connection between health system purchasing and supply chain support.

“We are taking a proactive role in pharmace…

The biggest medtech personnel moves in 2022

Some of the largest companies in medtech have promoted, replaced or removed leaders in recent months.

In July, Medical Design & Outsourcing compiled a list of the biggest personnel changes in the first half of 2022. Those included hirings, firings, promotions and retirements of CEOs, presidents and and other business leaders across the medtech industry.

The latter half of the year has brought even more changes. To close out 2022 and prepare for 2023, here are more of the year’s biggest medtech moves — and some updates since the news first broke.

Butterfly Network CEO steps down

Todd Fruchterman

On Dec. 6, Butterfly Network (NYSE:BFLY) announced that it reached a mutual agreement with Dr. Todd Fuchterman to step down as president and CEO. Fruchterman also left Butterfly’s board of directors.

Fruchterman oversaw Butterfly’s development of artificial intelligence-based ha…

Cardinal Health expands single-use device reprocessing facility

Cardinal Health’s Sustainable Technologies facility in Riverview, Florida [Photo courtesy of Cardinal Health]

Cardinal Health (NYSE:CAH) recently opened its expanded Sustainable Technologies facility in Riverview, Florida.

The facility is now twice as large as before, at 100,000 square feet, said Dublin, Ohio-based Cardinal Health.

The medical device manufacturer and distributor launched Sustainable Technologies in 2015 to collect, reprocess and recycle single-use devices in the U.S. Sustainable Technologies now works with more than 3,000 U.S. hospitals and ambulatory service centers, Cardinal Health said.

The FDA allows single-use devices to be used more than once if reprocessors can show the reprocessed devices are substantially equivalent to the original device. Many single-use devices can be recycled when they can not be reprocessed.

NEED TO KNOW: Ramping up manufacturing for sing…

Cardinal Health beats The Street in Q1 — with pharma sales up 15%

Cardinal Health (NYSE: CAH) today reported first-quarter results that beat the consensus forecast on Wall Street, sticking by its full-year EPS guidance.

The Dublin, Ohio–based pharma and medtech giant earned $110 million, or 40¢ per share, off $49.6 billion in revenue for the quarter ended Sept. 30, 2022. The bottom line was less than half what it was during last year’s Q1, while revenue was up 13%.

Adjusted to exclude one-time items, Cardinal Health saw EPS of $1.20. The adjusted EPS was 26¢ ahead of The Street, where analysts expected EPS of 94¢ on revenue of $48.19 billion.

Profits were up 6% on revenue growth of 15% for the Pharmaceutical segment. Growth drivers included branded pharmaceutical sales growth from existing and net new Pharmaceutical Distribution and Specialty customers.

However, the Medical segment swung to a loss on a 9% sales decline. Cardinal Health said the Medical segment results were affected by personal equipment pr…

Cardinal Health exec opens up on diversity in pharma and biotech

Yin Hwa Lai, a director and principal scientist at Cardinal Health, has extensive pharma experience. She now focuses on providing Chemistry, Manufacturing, and Controls (CMC) regulatory consulting and strategy in small molecules, biologics and cell and gene therapy.

In the following interview, Yin touches on what first piqued her interest in the pharmaceutical industry and provides insights into how to encourage more young women to enter the field. She also provides perspective on diversity and inclusion initiatives in the pharma and biotech industry.

The responses have been lightly edited.

What first piqued your interest in the pharma industry?

Yin: I was a curious child. I always was interested in how things work. My grandparents exposed me in childhood to herbs and Chinese medicine. They used herbs to treat symptoms such as cough and fever. That sparked my interest in pharma.

During my undergrad, I majored in chemistry. In my graduate coursewor…

Cardinal Health’s CFO to move up to corner office

Cardinal Health CFO and soon-to-be CEO Jason Hollar [Image courtesy of Cardinal Health]

Cardinal Health (NYSE: CAH) announced today that its board has elected CFO Jason Hollar to become the pharma and medtech giant’s new chief executive officer, effective Sept. 1.

Hollar will succeed Mike Kaufmann, who has been Dublin, Ohio–based Cardinal Health’s CEO for the past five years. The CEO transition comes as Cardinal Health continues efforts to refocus its Medical business after the $1 billion sale of its Cordis business last year.

“This is a transformational period at Cardinal Health, and I am humbled to have the opportunity to lead a business that plays such a vital role in the healthcare ecosystem,” Hollar said in a news release.

Cardinal Health independent board chairperson Gregory Kenny described Kaufmann as a “tremendous leader during his tenure at Cardinal Health, helping the company navigate a p…

Beckman Coulter Life Sciences names Suzanne Foster as president

Lab automation specialist Beckman Coulter Life Sciences has appointed Cardinal Health veteran Suzanne Foster as president.

Foster served as Cardinal Health’s President Health-at-Home subsidiary from January 2020 to March 2022.

She has more than 25 years of experience in the healthcare industry, and also sits on the boards of several companies.

Foster has also served as the Stanley Black & Decker’s president of healthcare and worked for ten years as the general manager of Medtronic’s advanced energy unit.

“I believe a significant step forward can be made by evolving workflows,” Foster wrote in an email. “Finding solutions that make things as clear, accurate, and efficient as possible will certainly make the workload on laboratory staff more manageable.”

Suzanne Foster

Foster noted that she has repeatedly heard the topic of automation come up in conversations with customer…

Cardinal Health announces $124M settlement of investors’ opioid suit

Cardinal Health directors’ insurers will pay the company $124 million to settle a stockholder derivative action related to the opioid crisis.

The company (NYSE: CAH) on July 22 issued a court-authorized notice to alert investors to a settlement hearing to be held on Oct. 4 in U.S. District Court in Southern Ohio.

If the settlement is entered, it would end nearly three years of hard-fought litigation that sought to prove that present and former board members of Cardinal Health failed in their oversight of the company, according to a plaintiffs motion filed May 25 for preliminary approval of the proposed settlement.

Through their lawyers, the investors claimed that the board members acted with reckless disregard for the best interests of Cardinal by allowing Cardinal to distribute prescription opioids without fully adhering to the laws governing the distribution of controlled substances, including the Controlled Substances Act (the “CSA”). The plaint…