Cardinal Health says contracts with UnitedHealth's OptumRx will not be renewed

[April 22, 2024]  (Reuters) - Cardinal Health said on Monday its pharma distribution contracts with UnitedHealth Group Inc's OptumRx unit will not be renewed after they expire at the end of June.

The drug distributor said it expects to partially offset the impact of losing the OptumRx contracts through a combination of new customer wins and growth in its specialty pharmacy business.

"We are excited about the many other opportunities in the marketplace, such as the onboarding of new customers and the additional capabilities from the integration of Specialty Networks in fiscal 2025," said Debbie Weitzman, CEO of the company's pharmaceutical and specialty solutions division.

Cardinal Health declined to provide any further comment on the OptumRx contracts.

OptumRx is a pharmacy benefit manager which acts as an intermediary between insurers and drugmakers to negotiate the prices of prescription drugs.

UnitedHealth Group's headquarters building is seen in Minnetonka, Minnesota, U.S. in this handout picture taken in 2019. UnitedHealth Group/Handout via REUTERS/File Photo

(Reporting by Mariam Sunny in Bengaluru; Editing by Krishna Chandra Eluri)

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