Cardinal spin-off?
This article was originally published in The Gray Sheet
Executive Summary
Cardinal Health is weighing the possibility of spinning off its $5.6 billion clinical and medical products business as a separate, publicly traded company, the firm said Aug. 7. Last month, Cardinal consolidated its two major business activities of health care product sales and its $80 billion distributor operation into two distinct business units and cut 600 jobs (1"The Gray Sheet" July 21, 2008, In Brief). The clinical and medical products business includes Alaris infusion pumps, Avea respirators, Pyxis medication dispensing system, surgical gowns and gloves
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Cardinal Health will spin off its clinical and medical products businesses - representing $4 billion in annual sales - by mid-year, according to the company. Given the name "CareFusion" on Feb. 16, the spin-off entity will include Alaris infusion pumps, Avea respirators, Pyxis medication dispensing systems, the MedMined electronic infection surveillance service, and ChloraPrep skin preparation products. The new firm will be based in San Diego, have 13,000 employes, and is expected to trade on the New York Stock Exchange under the symbol "CFN." The spin-off has been in the works since last summer (1"The Gray Sheet" Aug. 11, 2008, In Brief)
Cardinal Health restructures
Dublin, Ohio-based firm is consolidating into two core businesses and cutting 600 jobs. The new organization, announced July 8, will consist of a Healthcare Supply Chain Services segment, which as a pharmaceutical/medical product distributor generates annual sales of over $80 billion, and a Clinical and Medical Products segment, with annual revenue of $5 billion. The latter group will include Cardinal Health's Alaris infusion pumps, Avea respirators, Pyxis medication dispensing systems, surgical gowns, gloves and other medical products. The firm says that over the next year it will evaluate the fit of a third business group, which includes its Tecomet orthopedic implant manufacturing services unit and Medsystems enteral devices and airway management products. The cost of the restructuring is estimated at $63 million in fiscal year 2009, which began July 1