Inflationary Pressures on Medical Segment Unlikely to Subside in Fiscal 2023

Cardinal Health is a leading domestic wholesaler of branded, generic, and specialty pharmaceutical products. With over $160 billion in annual U.S. drug distribution revenue, Cardinal Health supplies over one quarter of the overall market, slightly outpaced by AmerisourceBergen and McKesson in market share. Together, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the U.S. market. The highly consolidated pharmaceutical wholesale market reflects the substantial scale-based cost advantages held by the largest players.