Cardinal Health posted a 2% sales increase in the first quarter of fiscal year 2018, compared to the same period the previous year. But its profits took a hit—the company put up $115 million in net earnings in the first quarter, a 63% drop year over year.
Its pharma division, which markets radiopharmaceuticals, plasma products and other drugs, saw a 13% dip in profits year over year, while its medical segment reported a 1% increase, from $127 million to $129 million. The medical unit was bolstered by acquisitions, the company said in a statement.
"Fiscal year 2018 started largely as we expected and included strong performance from many of our business lines across the segments," said CEO George Barrett in the statement. "With one quarter behind us, we remain comfortable with our full-year guidance. We're excited to have closed the Patient Recovery transaction during Q1 and are pleased to report the integration is going well."
In April, the company announced it would pony up $6.1 billion for Medtronic’s Patient Recovery portfolio, which includes three businesses: the Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency units. The deal closed in July.
And in September 2016, Cardinal Health, a longtime distributor of Navidea’s Lymphoseek diagnostic imaging agent for cancer, struck a deal worth up to $310 million to acquire the product. Back in 2015, the company picked up Johnson & Johnson’s Cordis division, a coronary and peripheral vascular disease specialist, for $1.9 billion.
In a separate announcement, Cardinal Health said that Chief Financial Officer Mike Kauffman will take the helm effective Jan. 1, 2018. Current CEO Barrett will stay on as executive chairman of the board.