Home » Cardinal Health to Spin Off Clinical and Medical Products
Cardinal Health to Spin Off Clinical and Medical Products
September 29, 2008
Just three months after restructuring, drug distributor Cardinal Health, Dublin, OH, has announced that it will be spinning of its newly focused Clinical and Medical Products segment into a standalone medical technology business. The new public company will be based in San Diego, CA.
David L. Schlotterbeck, currently vice chairman of Cardinal, has been tapped as CEO of the as-yet unnamed company. George S. Barrett, who currently heads the Healthcare Supply Chain Services, will succeed R. Kerry Clark as CEO of Cardinal. Clark will retire after the spin-off.
Since 1996, Cardinal Health has built an industry-leading med-tech business that, as an independent company, would have the size and scale to stand on its own," Clark said. "This strategic decision will benefit Cardinal Health and the new med-tech company by allowing each business to focus on its unique growth strategies, capital needs and customer requirements."
The new company, which will focus on providing offerings for infusion, medication and supply dispensing, respiratory care, infection prevention, medical diagnostics and surgical procedures, is expected to have revenues of more than $4 billion for fiscal year 2009.
Cardinal Health will retain its surgical gloves, drapes and apparel, and fluid management businesses that are currently part of the Clinical and Medical Products segment. In addition, Cardinal will retain its Pharmacy Services and Medicine Shoppe International businesses. The company will continue its previously announced in-depth review to align resources and reduce costs throughout the organization.