Today's Technical View on Cardinal Health and McKesson: Emerging Markets to Drive Growth for Drugs Wholesalers

 Today's Technical View on Cardinal Health and McKesson: Emerging Markets to
                      Drive Growth for Drugs Wholesalers

  PR Newswire

  LONDON, February 14, 2013

LONDON, February 14, 2013 /PRNewswire/ --

The weak macroeconomic environment has had an impact on the pharmaceutical
industry, however, not as much as other industries. The growth for
pharmaceutical wholesalers in 2013 will be driven by emerging markets. Also,
the launch of new drugs and potential blockbusters will drive growth for
pharmaceutical wholesalers such as Cardinal Health Inc. (NYSE: CAH) and
McKesson Corporation (NYSE: MCK). StockCall initiated free in-depth technical
analysis on Cardinal Health and McKesson which are currently available upon
sign up at

Emerging Markets, New Drug Launches and Potential Blockbusters to Drive Growth

The International Federation of Pharmaceutical Wholesalers (IFPW), which
represents a strong, effective platform to establish strategic dialogue within
the worldwide pharmaceutical community, expects average annual growth of 13%
to 16% for emerging markets (Brazil, Russia, India, China, Turkey, Mexico and
Korea). These markets are expected to account for 40% of the global market
growth through 2013.

The IFPW believes that despite the pressures, there is still room for new drug
launches and potential blockbusters, which should drive growth for drugs
wholesalers. This year will see the launch of a number of new drugs, including
products targeted at niche uses and narrow patient populations. Overall, IFPW
expects pharmaceutical market to grow between 3% and 6% through 2013.

Patent Expirations

The pharmaceutical industry saw a number of patent expirations for blockbuster
drugs in 2012 and is likely to see more in 2013. As a result, the share of
generic drugs will continue to increase. This will have an impact on the
top-line of pharmaceutical wholesalers.

Cardinal Reports Strong Q2 Results

Last week, Cardinal Health reported strong financial results in its second
quarter of fiscal 2013. The Dublin, Ohio-based company reported second quarter
revenue of $25.2 billion. The company's revenue for the pharmaceutical segment
fell 8% to $22.7 billion in the second quarter. The decline was due to
non-renewal of Express Scripts contract as well as expected conversions from
branded pharmaceuticals to lower-priced generics. The decline was partially
offset by revenues from new pharmaceutical distribution customers. Sign up for
the free technical analysis on Cardinal Health Inc. at 

Cardinal Health's non-GAAP earnings for the quarter rose 15% to $0.93 per

George Barrett, Chairman and CEO of Cardinal Health, noted that the company
has now completed a strong first half to its fiscal 2013 with a good second
quarter performance. Barrett said that while continued brand-to-generic
conversions and the previously announced movement of the Express Scripts
contract drove a revenue decline in the Pharmaceutical segment, excellent
performance from generic programs and new customer wins fueled profit gains.

McKesson's Q3 Results

McKesson recently reported revenue of $31.2 billion for its third quarter
ended December 31, 2012, up 1% over the same period in the previous year. The
company's adjusted earnings per share for the quarter was $1.41, up from $1.40
per share reported for the same period in the previous year. Download the free
report on McKesson Corporation by registering at 

John H. Hammergren, Chairman and CEO of McKesson, said that the company's
full-year view of the operating performance in its Distribution Solutions
segment is now better than its original expectations.

For the fiscal year ended on March 31, 2013, McKesson expects adjusted
earnings to be between $7.10 per share and $7.30 per share.

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