Massive $1.12 Billion Acquisition! How Cardinal Health Is Taking Over Cancer Care

September 20, 2024 William H

Cardinal Health announced plans to acquire Integrated Oncology Network (ION) for $1.12 billion. This acquisition represents a strategic move by Cardinal Health to expand its reach in cancer care, further diversifying beyond its core drug distribution business.

Details of the Acquisition

Cardinal Health, based in Dublin, Ohio, has been actively growing its cancer care division, Navista, which provides community oncology practices with reimbursement services, management support, and more. By acquiring ION, Cardinal Health will add more than 50 practice sites across 10 states to its portfolio, enhancing its capabilities to serve over 100 healthcare providers.

The acquisition is expected to have a positive financial impact, with Cardinal Health projecting profit growth within 12 months of closing the deal. This move mirrors recent activities by competitors in the healthcare space, such as McKesson’s $2.49 billion acquisition of Florida Cancer Specialists and Cencora’s $2.1 billion acquisition of OneOncology.

Massive $1.12 Billion Acquisition! How Cardinal Health Is Taking Over Cancer Care

Strategic Importance

This acquisition aligns with Cardinal Health’s broader goals, which were outlined during their 2023 investor day. The company’s focus on expanding its relationships with community oncology practices has been a key part of its strategy, and this deal is seen as a significant step forward in that direction.

Industry Trends

The healthcare industry has seen a significant wave of consolidation, with major players seeking to expand their service offerings. This acquisition by Cardinal Health follows the trend of healthcare service companies moving beyond drug distribution to provide a wider range of services, including direct care to patients, especially in cancer treatment.

FAQs

Why did Cardinal Health acquire Integrated Oncology Network?
Cardinal Health acquired ION to expand its cancer care services and strengthen its presence in community oncology practices. The deal adds 50 practice sites and over 100 healthcare providers to its Navista network.

What is Navista?
Navista is Cardinal Health’s division focused on providing services to community oncology practices. It offers management support, reimbursement services, and other tools to help improve cancer care.

How will this acquisition impact Cardinal Health’s business?
The acquisition is expected to be accretive to Cardinal Health’s profits within a year of closing the deal. It enhances the company’s ability to offer comprehensive oncology services across the U.S.

What other companies are making similar moves?
McKesson and Cencora are among other healthcare companies making significant acquisitions in the cancer care space. McKesson recently acquired a unit of Florida Cancer Specialists for $2.49 billion, while Cencora purchased OneOncology for $2.1 billion.