Exhibit 99.01
THE INVESTOR
Investor Relations
December 2003 Volume 1 No.5
ABOUT THE INVESTOR
This is a publication of the Cardinal Health Investor Relations department and
contains select news impacting Cardinal Health and its businesses. This document
is not intended to supplant Cardinal Health's filings with the SEC, and is not
an offer to sell securities of Cardinal Health. Investors should read Cardinal
Health's SEC filings for a more complete understanding of the performance and
financial condition of the company.
INSIDE THIS ISSUE (CLICK TO VIEW)
HIGHLIGHTS
- GUIDANCE FOR FISCAL 2004 REAFFIRMED: Cardinal Health expects
strong revenues, improved mix of higher profit margin sales and
expense controls will deliver mid-teens or better EPS growth and
operating cash flow of $1.3B.
- DISTRIBUTION MODEL CHANGES: Read how Cardinal Health's changes from
a "buy and hold" inventory model to a "just in time" model will
increase efficiency and help meet an industry need to improve the
safety and security of the nation's pharmaceutical supply.
- REVENUE IMPLICATIONS OF MODEL TRANSITIONS: Understand how the new
inventory model and Cardinal Health's new activity based fee
structure to manufacturers is not expected to have any meaningful
impact on total revenue trends. Also learn about might shift
between the categories comprising total revenues.
- ACQUISITION OF INTERCARE GROUP BROADENS GLOBAL PRESENCE IN STERILE
MANUFACTURING: Cardinal Health's most recently announced
acquisition, a leading European pharmaceutical products and
services company, has strong positions in several key fast-growth
areas.
CARDINAL HEALTH REAFFIRMS EARNINGS GUIDANCE
Cardinal Health reiterates its long term and fiscal year 2004 performance
targets. Cardinal Health's long term targets are:
- Low- to mid-teens annual revenue growth
- Mid-teens or better annual EPS growth
- Return on equity of 20 percent or better
- Free cash flow ultimately growing to 60 percent of net earnings
With no change to fiscal 2004 earnings growth expectations, the company also
reiterates the forecasted earnings pattern of faster growth in the second half
versus the first half of the fiscal year, with particularly tough comparisons in
the second quarter. All of the earnings growth contribution in the first half of
the fiscal year is expected to come from the company's Medical Products and
Services, Pharmaceutical Technologies and Services, and Automation and
Information Services segments. In the second half of the year, accelerating
performances from these three segments and improving returns from the
Pharmaceutical Distribution and Provider Services segment should result in over
500 basis points acceleration in EPS growth versus the first half of the fiscal
year.*
As the company moves into fiscal 2005, total earnings growth is expected to be
favorable to fiscal 2004 as the Pharmaceutical Distribution and Provider
Services business begins to contribute more to expected earnings growth and the
company's other three segments continue sustained, strong performance.
Highlights for fiscal year 2004 performance by segment are expected to include:
- PHARMACEUTICAL DISTRIBUTION AND PROVIDER SERVICES operating
earnings will be affected in the first and second quarters and full
year as the company embarks upon the transition to a new
just-in-time (JIT) and activity based fee business model and faces
particularly strong prior year second quarter performance
comparisons. Changes to revenue and earnings associated with this
shift are discussed more fully in this issue (see related stories).
- In MEDICAL PRODUCTS AND SERVICES, new self-manufactured product
volumes and market share gains in distribution should drive the
strongest organic top line growth in this business since 1999.
These gains, combined with ongoing expense controls and
strong self-manufactured product mix momentum, should drive
improving returns on sales and capital for the full year.
- PHARMACEUTICAL TECHNOLOGIES AND SERVICES should increase operating
earnings for the full year through a combination of strong
performances from nuclear pharmacy, oral manufacturing and
pharmaceutical packaging, with particular strength in sterile
manufacturing and on-going expense control. Pharmaceutical
Technologies and Services is expected to be the fastest growing
business segment this fiscal year.
- The need for patient safety and cost containment solutions and the
introduction of Pyxis PatientStation SN(R) provides confidence for
high growth for the foreseeable future for the AUTOMATION AND
INFORMATION SERVICES business, including continued strong top line
demand for new products and services and rising returns on sales
and capital.
Cardinal Health's long term formula for success remains unchanged: strong
revenue growth accompanied by rising returns on sales and capital. The company's
strong balance sheet and free cash flow will enable continued investment in
strategic opportunities to build on its leadership positions in the marketplace.
Cardinal Health expects to continue to deliver exceptional performance that will
be driven by a greater balance of earnings growth across its businesses (see
sidebar).
*Amounts set forth are, where relevant, before special items.
(Call out box: OUR EARNINGS MIX: A STRATEGIC BLEND: Cardinal Health's mix of
earnings continues to shift toward its Medical Products and Services,
Pharmaceutical Technologies and Services, and Automation and Information
Services segments. Fourteen billion dollars have been invested in these three
lines of business since 1996, which today deliver 60 percent of the company's
earnings and the majority of the expected earnings growth in fiscal year 2004.
These investments have enabled a strategic expansion of product and service
offerings.
For example, in October, the company completed its purchase of Gala
Biotech as part of its ongoing strategy to grow and enhance innovative drug
development services. The pending acquisition of Intercare (see related story),
a well-established service provider to the pharmaceutical and biotech industry
based in the United Kingdom, is another great example of how the company
intends to better serve its customers globally by increasing its scale in
proprietary manufacturing and broadening its participation in the fast-growing
generics market.)
A CHANGING DISTRIBUTION MODEL
Since January of this year, Cardinal Health has been communicating about the
changing dynamics of its pharmaceutical distribution business. Essentially, two
changes are occurring. First, Cardinal Health's distribution pricing model must
be updated to account for dramatic increases in the variety and type of
medications available to patients, as well as the commensurate complexity of
logistics to distribute them. Second, the current inventory management model,
which is based on large amounts of inventory being held in the channel, must
also change. Importantly, these changes further enhance the value Cardinal
Health provides to both manufacturing partners and provider customers.
These two factors are focused predominately on the business equation between
manufacturers and distributors. A highly efficient distribution model which
includes just-in-time (JIT) inventory
management and pricing models has already been established between distributors
and provider customers. It is time to develop a similarly efficient inventory
management and pricing system between Cardinal Health and manufacturers. Making
this change will not only increase efficiency, but also improve the safety and
security of the nation's pharmaceutical supply.
As Cardinal Health works with its manufacturing partners to make these changes,
it is important to understand why the company believes this evolution is
necessary and beneficial, how it will strengthen its already strong
relationships with manufacturing partners, and its short- and long-term impact
on operating results. It's also important to note that the role of Cardinal
Health as an essential value provider in the supply chain is not changing;
rather the change is in how the manufacturer compensates the company for the
services it receives.
Cardinal Health believes this new model will deliver significant financial and
operating benefits to both the company and manufacturers, while ensuring
continuing high service levels to provider customers.
STRONG FUNDAMENTALS IN GROWING DISTRIBUTION BUSINESS
The fundamentals of the pharmaceutical distribution industry are stronger than
ever. Demand for domestic pharmaceuticals continues to be one of the most
rapidly growing components of the gross domestic product (GDP). The complexity
of pharma and biotech drugs creates unique and specialized distribution
requirements that favor sophisticated, technologically advanced distributors
with scale and geographic reach, further emphasizing the essential role of the
distributor in the supply chain. The U.S. pharmaceutical market alone is greater
than $200 billion and growing more than 10 percent annually. To achieve the
scale and scope required to meet these increased needs, the pharmaceutical
distribution industry, which handles more than 80 percent of the nation's
pharmaceutical volume, has consolidated dramatically over the past
10 years. In 1990 there were 100 full-line wholesale distributors like Cardinal
Health. Today, the top three distributors have earned more than 90 percent of
the distributed market share. Manufacturers and providers have become
increasingly dependent on wholesalers to facilitate the distribution supply
channel.
The U.S. drug wholesale industry has evolved to become perhaps the most
effective distribution system in any industry. It is an extremely efficient,
competitive supply chain that delivers an essential product in a highly
regulated and controlled industry, requiring nearly 100 percent service levels,
daily deliveries and 6-12 hour turnaround for more than 100,000 unique products.
Products are delivered to the right place, at the right time, in the right
quantities, in the right varieties and in the right, safe condition. And, the
industry is accomplishing all that at the right cost. How? The industry today
delivers a highly proprietary capability built on logistics expertise, augmented
by technology investments and a nationwide network to achieve both scale and
local availability. These factors enable the industry to consolidate demand and
process orders in ways that are reliable, efficient and cost effective for both
manufacturers and providers.
The effectiveness of the pharmaceutical distribution system is based on
distributors bridging supply from more than 500 manufacturers with demand from
nearly 150,000 points of care. This complex system provides an efficient, cost
effective way for manufacturers to bring products to market and reduces the
administrative requirements as well as the burden of inventory investments for
provider customers. The industry today provides unprecedented national service
reach with advanced logistics technology, at a remarkably low cost structure.
Within this highly efficient industry, Cardinal Health is a leader, each day
delivering more than 2.5 million pharmaceutical products to more than 30,000
locations in the United States. The
service levels and response times required to support a business with this
scope have been made possible through substantial investments. Over the past 10
years, Cardinal Health has invested more than $500 million to modernize and
expand its distribution network and build a world class IT infrastructure
critical to matching demand and supply, enabling Cardinal Health to deliver
nearly 100 percent service levels to the point of care. The network
strategically positions inventory for the benefit of both providers and
manufacturers to ensure availability of products within hours of demand. But,
Cardinal Health's pharmaceutical distribution services go well beyond logistics
to include administrative and financial services in support of both providers
and manufacturers. Some of the important administrative services provided
include customer pricing, manufacturer/provider contract portfolio management,
creation of generic formularies, processing of manufacturer returns and product
recalls, marketing and merchandising programs, and the management of nearly 1
million support calls per month on behalf of manufacturers.
In addition, extensive investments in inventory and accounts receivable are
complemented with other financial services such as managing pricing chargebacks
for manufacturers and the credit/risk of provider receivables. Sophisticated
electronic processing systems integrate these services and allow provider
customers to order and monitor their purchases online, manage formularies and
access management reports.
Over the past decade, Cardinal Health's pharmaceutical distribution business has
also driven substantial cost from the supply chain, returning billions of
dollars in savings to provider customers. The national drug distribution
industry, as characterized by the three market leaders, including Cardinal
Health, has seen service levels and response rates improve while costs have come
down, and industry returns on capital have steadily improved. This has been good
for the entire supply chain, including manufacturers as well as provider
customers.
EVOLVING BUSINESS MODEL
To understand why a change is necessary to a system that has worked well for so
many years, it is important to understand how the current model has evolved. The
overriding objective has always been to facilitate a safe, secure, efficient and
responsive system to ensure the highest levels of patient care. Providers,
distributors and manufacturers all recognize that the most effective way to
provide patients with fast access to essential pharmaceuticals is by keeping
inventory close to where it is needed.
However, the cost to hold inventory made it impractical for each of the nearly
150,000 points of care to stock the variety and complexity of pharmaceuticals
necessary to adequately meet patient demand. To meet patient needs while
balancing these economic realities, pharmacies looked to wholesalers to carry
the backup inventory that ensured they could provide high service levels with
low inventory investments. This solution provided near immediate access to
pharmaceuticals as distributors gained economies of scale and invested heavily
to create a sophisticated JIT system for providers.
The holding of inventory by distributors became a central component to the
success of this system. In order to fulfill patient demand, providers relied
upon distributors and, in turn, manufacturers found distributors critical to
maintain supply of their products near patients.
These are the dynamics that led to the current "buy and hold" (B+H) model
between distributors and manufacturers. Distributors invest in -- or buy --
inventory, then stock it in distribution centers to hold it until required by
providers. Margins were earned by distributors based largely on the amount of
inventory bought and held, and to a lesser extent on fees collected for the
unique distribution requirements of the individual pharmaceutical products. In
an environment where inventory was appreciating at a rate greater than the cost
of carrying, distributors were
encouraged to carry more and more inventory. Large inventory stocks drove
margins through price appreciation and manufacturer incentives, with the
resulting profitability more than covering distribution costs for all products.
With knowledge of distributors' willingness to buy and hold inventory,
manufacturers also periodically offered deals or incentives to carry even more
inventory, exacerbating the large supplies of inventory in the channel.
This excess channel inventory in the B+H model also created undesirable
diversion opportunities and fostered the creation of more than 6,000 secondary
market distributors known as alternate source vendors (ASVs). Many ASVs do not
service providers directly but instead are in business to make arbitrage
profits. Unfortunately, the rise in ASVs has made the supply chain more porous
and ultimately opened new avenues for the introduction of counterfeit products.
One short term solution to the issues created by excess supply was to refine
existing broad contractual agreements with manufacturers to try to limit
inventory in the channel. These addendum agreements are referred to as Inventory
Management Agreements, or IMAs. However, in limiting inventory, IMAs reduce the
margin that is derived from appreciation from inventory held by distributors
which has become the primary way manufacturers pay for distribution services
received.
IMAs don't address the individual distribution requirements for
pharmaceuticals, which are often dramatically different. Twenty years ago, the
vast majority of drugs were oral solid tablets or
capsules. Today's array of products increasingly includes injectables,
biologics, controlled substances and chemotherapies, all of which require highly
sophisticated handling. The greater variability in the characteristics of drugs
results in significant fluctuations in the cost to distribute individual
products.
So, a model needs to evolve to both replace the investment price appreciation
from higher inventory levels and adequately compensate distributors for the
increased complexity and cost of distribution for each unique product. The
system must be flexible and efficient, like the JIT model that exists downstream
today between distributors and providers.
JUST IN TIME, A NEW MODEL
It is clear that a new "just-in-time" (JIT) model and activity-based pricing,
similar to the one so successfully developed downstream between distributors and
providers, needs to be developed upstream for manufacturers and distributors.
Such a model would wring out inefficiencies upstream by departing from the
historic B+H model that depended on inventory investment gains. In addition, by
more closely matching supply with demand, the model would provide manufacturers
with significantly improved visibility down the supply channel to end-user
demand. Such information would allow manufacturers to more effectively plan for
production and logistics.
The economics of the new JIT model are built around "fees for service," rather
than inventory investment gains. Fees would be based on specific distribution
activities for each manufacturer and its respective products. For example, a
bottle of solid oral dose pills would cost less to distribute than a
refrigerated injectable product. Again, departing from the B+H approach, where
compensation was based on a pool of margin associated with broad inventory
investments.
The JIT model also takes a major step forward to address the critical issue of
counterfeiting and product tampering. Limiting channel inventory reduces
diversion opportunities by establishing a
more secure distribution system and effectively eliminating arbitrage
opportunities. Importantly, the shift in pricing and JIT inventory model to
manufacturers will not affect the way Cardinal Health will do business with
provider customers. But, the degree of price discounting Cardinal Health will be
able to provide to its customers will have to slow.
Cardinal Health is in active discussion with pharmaceutical manufacturers
regarding how to move to this new model and is developing an approach the
company calls Distributor Service Agreements, or DSAs (see sidebar). Positive
meetings have already been held with executives from leading pharmaceutical
companies. The reaffirmation of the critical role of distributors and the need
for adequate compensation for services provided during these conversations give
Cardinal Health confidence that DSAs are the right model for the future.
Based on collaboration and trust, DSAs will result in greater financial
stability, less volatility and greater predictability of results for Cardinal
Health's pharmaceutical distribution business. The industry recognizes the
distribution requirements of today are far more complex than in the past. The
DSA approach will maintain the security, access and efficiency of the nation's
pharmaceutical supply without increasing prices to patients.
(Sidebar: Distributor Service Agreements (DSAs) are contracts that define the
entire relationship with manufacturers and support a new model of pharmaceutical
distribution. DSAs will be unique between Cardinal Health and each manufacturer,
with features that include:
- Manufacturer and product specific agreements
- Fee based payment for distribution
- Performance based agreements, allowing differentiation
- Lower levels of inventory required for same or higher levels of service
- Expanded services provided to manufacturers.)
ATTRACTIVE FINANCIAL CHARACTERISTICS OF JUST-IN-TIME MODEL AND DISTRIBUTION
SERVICE AGREEMENTS
The pharmaceutical distribution industry's "buy-and-hold" approach over the past
two decades created some unique opportunities to earn margins in the company's
pharmaceutical distribution business. But, Cardinal Health's move to the
just-in-time model also has several distinct financial advantages. First,
margins should be more predictable and more consistently tied to revenue
performance throughout the fiscal year with less reliance on income from price
appreciation and vendor incentives. Cardinal Health's JIT model will also
require lower inventories, which should result in lower warehouse expense and
inventory carrying costs. Assets will turn faster. If fully implemented today,
working capital requirements would decline by over $1 billion. Less capital
will drive higher cash flows and substantially higher return on invested
capital. Bottom line: Cardinal Health's pharmaceutical distribution business
results will be more predictable with revenue streams to match end-patient
demand, more stable gross margins, solid returns on sales and capital with
less risk and dependence on price appreciation.
REVENUE IMPLICATIONS OF MODEL TRANSITION
Cardinal Health's change from the "buy and hold" model described in this
newsletter to a new JIT and activity based fee structure to manufacturers is not
expected to have any meaningful impact on total revenue trends in the future as
it has no impact on provider customer demand. But, there will be some shifting
between the categories that comprise total revenues. Here's why:
Cardinal Health's basic business is buying full cases (bulk) and breaking them
down to customized orders and delivering to provider customers. This is called
Direct Store Door (DSD) business, and is recorded as Operating Revenues.
Another service, exclusively available to providers who warehouse product is
Bulk Deliveries. Here, Cardinal Health orders product on behalf of a specific
warehousing customer, and either the manufacturer ships the product direct to
the customer warehouse or the product is shipped virtually simultaneously to the
customer warehouse when it hits Cardinal Health's dock. These products are never
put in to Cardinal Health's inventory. As such, these sales are normally a
complete pass through to Cardinal Health's customers and are reflected on the
company's income statement as a separate line item, Bulk Deliveries to Customer
Warehouses, with little or no associated profit. This bulk sales system exists
because many manufacturers choose to limit financial transactions exclusively to
distributors. Cardinal Health is providing a courtesy for customers to use
Cardinal Health's ordering system to place full case orders. Cardinal Health
merely submits the order to the manufacturer and processes the payment from the
customer.
Under the B+H model, some full case orders were filled from the company's
general inventory held in stock, as Cardinal Health built up increasing amounts
of surplus inventory. By filling some bulk deliveries from inventory held in
stock, Cardinal Health was also able to increase response rates. As that product
was pulled from warehouse stock it was recorded as Operating Revenue, not as
pass-through Bulk Deliveries to Customer Warehouse Revenues. This is called
"Bulk from Stock."
Bulk from Stock sales affect reported operating revenues at Cardinal Health, but
have no effect on the company's basic DSD business. As Cardinal Health shifts to
a new just-in-time model, with significantly lower inventories in its
warehouses, nearly all bulk orders will be shipped either from the
manufacturer or virtually simultaneously at time of receipt and not drawn
from general stock. Our general inventory stock will be used primarily to
support direct store door business.
LOOKING TO FUTURE REVENUE TRENDS
As shown in the table below, the overwhelming majority of Cardinal Health's
business is DSD. Trends in DSD volumes that represent shipments from Cardinal
Health warehouses direct to the customer site of care continue to be very
strong, indicating both strong industry demand and demand for Cardinal Health
services.
Box:
Cardinal Health Pharmaceutical Distribution Revenues
Fiscal 2003 2 Year Fiscal 2004
Revenues (000) CAGR Quarter 1
-------------- ------ -----------
Bulk Deliveries to Warehouses $ 6,069,900 -19% +26%
Operating Revenues
Direct Store Door (DSD) 32,968,975 +15% +26%
Bulk from Stock +5,613,893 +24% -38%
----------- ---- ----
Total Operating Revenues =38,582,868 +16% +18%
----------- ---- ----
Total Revenues $44,652,768 +9% +19%
Cardinal Health expects strong continued growth in its direct store door sales
throughout the remainder of this fiscal year, in excess of 15%, but reported
operating revenue growth will be impacted, particularly in the second fiscal
quarter, by the significant decline in "Bulk from Stock" revenues that is
resulting from the transition to a JIT model. The shift does not have an impact
on the company's overall earnings outlook as these influences were factored
into the guidance provided in August, October and again today.
DSD volumes and associated revenues represent what customers are buying for
their pharmacies to meet consumer prescription demand. In addition, DSD is the
primary earnings
driver for the company's pharmaceutical distribution business. As such, DSD
sales represent the best basis for evaluating the ongoing performance of its
drug distribution business. Due to the changing complexity of the sales mix in
pharmaceutical distribution, the company will provide this measure on a
going-forward basis to ensure investors fully understand the trends and future
potential of this business.
ACQUISITION BROADENS GLOBAL PRESENCE IN STERILE MANUFACTURING
Cardinal Health's most recently announced acquisition, the Intercare Group, a
leading European pharmaceutical products and services company, is a great
complement to its Pharmaceutical Technologies and Services business. Today, less
than 10 percent of Cardinal Health's business is generated outside the United
States, whereas Intercare generates most of its revenues in Europe--helping to
improve Cardinal Health's geographic balance. A further benefit of the
transaction is that Intercare has a strong presence in several fast-growth areas
such as pre-filled syringes, which is estimated to be growing about 15 percent
per year. The company sees an excellent growth opportunity with the acquisition
and expects the acquisition to be completed shortly.
The acquisition will provide Cardinal Health with a strong platform for global
coverage and will enable the company to:
- Increase its presence in proprietary sterile manufacturing:
Intercare is a leader in manufacturing sterile, pre-filled syringes
for European customers. This capability, coupled with Intercare's
other sterile manufacturing and pharmaceutical packaging services,
will extend the reach of Cardinal Health's already fast-growing
life sciences business.
- Better serve its customers globally: Intercare's complementary
product development, UK and continental European manufacturing and
service capabilities, and strong set of
global customers, will enable the combined company to better serve
the global needs of pharmaceutical and biotechnology firms.
- Broaden its participation in the fast-growing generic market:
Intercare's Martindale business is a leading manufacturer of
specialty generic pharmaceuticals, with sterile, non-sterile, and
aseptic manufacturing capabilities.
With more than 1,400 employees, six manufacturing sites and thirteen
distribution facilities, the operations of the Intercare Group are structured
around two divisions: Pharmaceutical Manufacturing and Pharmaceutical
Distribution. Seventy-five percent of Intercare's operating earnings come
from the manufacturing division, with 25% coming from distribution.
The pharmaceutical manufacturing division manufactures specialty pharmaceuticals
on a contract basis for global pharmaceutical companies and on a proprietary
basis for hospital and pharmacy markets. Products include pre-filled syringes,
specialty prescriptions, vaccines, ophthalmic, and biological and hormone
products.
Within the manufacturing division, Intercare is currently building a new
manufacturing facility just outside Brussels focused on pre-filled syringes,
more than doubling capacity. This site is expected to be fully cGMP (Current
Good Manufacturing Practices) compliant, which will provide Intercare the
opportunity to expand existing business relationships as pharmaceutical
companies in the United States and abroad continue to outsource large portions
of manufacturing. Completion of the plant is expected in 2005.
In addition to the manufacturing division, Intercare also distributes generic
and branded pharmaceutical products to pharmacy and other dispensing customers
in the United Kingdom. This segment currently services more than 5,500 accounts
through its 13 distribution centers.
Expanding Cardinal Health's manufacturing footprint in Europe not only provides
a broader product offering to its global customers, it also provides a platform
to expand within the company's existing areas of expertise, such as
lyophilization and blow-fill-seal manufacturing. This acquisition, when
completed, will further Cardinal Health's strategy of making acquisitions that
broaden its product and service offerings for customers and expand globally.
UPCOMING EVENTS
JP MORGAN CONFERENCE
Friday, January 13, 2004
Location: San Francisco, California
FY 2004 SECOND QUARTER EARNINGS RELEASE CALL AND WEBCAST
Thursday, January 22, 2004
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Steve Fischbach
VP, Investor Relations
614.757.7067 (direct)
614.757.8067 (fax)
stephen.fischbach@cardinal.com
Tammy Gomez
Director, Investor Relations
614.757.5218 (direct)
614.652.4514 (fax)
tammy.gomez@cardinal.com
Suzie Stoddard
Director, Investor Relations
614.757.7542 (direct)
614.757.8542 (fax)
suzanne.stoddard@cardinal.com
INDUSTRY TRENDS
FINANCIAL FUNDAMENTALS AS OF DECEMBER 12, 2003
Security: CAH (Common)
Exchange: New York Stock Exchange
Currency: U.S. Dollar
PRICE AND VOLUME
Recent Price $63.73
Trade Date 12/12/03
52-Week High $67.96
52-Week Low $50.00
52-Week Change 2.2%
YTD Change 7.7%
Avg. Daily Volume Last 10 Days 1,285,360
SHARE RELATED
Market Capitalization (000) $27,591,377
Shares Outstanding (000) 432,942
Shares Outstanding Date 10/31/03
Source: www.cardinal.com
FORWARD-LOOKING INFORMATION
Except for historical information, all other information in this document
consists of forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected, anticipated or implied. The most significant
of these uncertainties are described in Cardinal Health's Form 10-K, Form 8-K
and Form 10-Q reports (including all amendments to those reports) and exhibits
to those reports, and include (but are not limited to) the costs, difficulties,
and uncertainties related to the integration of acquired businesses, the loss
of one or more key customer or supplier relationships, changes in distribution
outsourcing patterns for health care products and/or services, the costs and
other effects of governmental regulation and legal and administrative
proceedings, and general economic and market conditions. Cardinal Health
undertakes no obligation to update or revise any forward-looking statements. In
addition, statements in this newsletter may include adjusted financial measures
governed by Regulation G. For a reconciliation of these measures, please visit
the Investor Relations page at www.cardinal.com.
Copyright 2003
Cardinal Health, Inc.
All rights reserved.
Lit. No. IR03242 (12/03)
Cardinal Health
Investor Relations
7000 Cardinal Place
Dublin, Ohio 43017
614.757.5000
www.cardinal.com