Cardinal Health's (CAH) Unit to Aid Canadian Healthcare System
Cardinal Health's (CAH) subsidiary to support the Canadian Healthcare system against COVID-19 with vaccination policy.
Cardinal Health, Inc.’s CAH wholly owned subsidiary – Cardinal Health Canada – recently announced an employee vaccination requirement policy, which is part of its continued efforts to protect employees, customers and the Canadian Healthcare system against COVID-19.
Taking into consideration the recent and pending provincial government directives and customer protocols in Canada, Cardinal Health Canada aims to have all employees vaccinated by January 2022.
It is worth mentioning that Cardinal Health Canada manufactures and distributes medical and surgical products and offers clinical and supply chain solutions throughout the continuum of healthcare. It lends support to 95% of hospitals, and above 4,000 long-term care, retirement and assisted living homes throughout Canada.
This announcement is likely to provide a boost to Cardinal Health's Pharmaceutical business.
More on the News
Per management at Cardinal Health Canada, vaccination is the most helpful defense to counter the threat of COVID-19 and safeguard broader public health.
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Apart from this, Cardinal Health Canada's decision reflects its commitment to not only protect its employees but also cooperate with its healthcare customers and be a responsible employeer in Canada.
Per a report by Fortune Business Insights, the global vaccines market was worth $46.88 in 2019 and is anticipated to reach $104.87 billion by 2027, witnessing a CAGR of 10.7% during the forecast period (2020-2027). Hence, this announcement is a well-timed one for Cardinal Health.
In August, the company partnered with IRE EliT, the radiopharmaceutical subsidiary of IRE Group, to expand patient access to novel radiopharmaceuticals for Positron Emission Tomography (PET) imaging to support the increasing demand for Ga-68 labeled radiopharmaceuticals.
Again, in August, Cardinal Health extended its agreements with CVS Health, wherein the former will distribute pharmaceuticals to retail pharmacies and distribution centers through Jun 30, 2027.
Plus, in the same month, Cardinal Health partnered with Abbott and Quidel to commercialize and expand access to over-the-counter rapid COVID-19 tests.
Shares of this Zacks Rank #5 (Strong Sell) company have gained 12% in a year’s time, compared with the industry’s growth of 31.8%.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Henry Schein, Inc. HSIC, Envista Holdings Corporation NVST and Patterson Companies, Inc. PDCO, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Henry Schein’s long-term earnings growth rate is estimated at 13.9%.
Envista Holdings’ long-term earnings growth rate is estimated at 27.4%.
Patterson Companies’ long-term earnings growth rate is projected at 9.6%.
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