Cardinal Health to divest contract manufacturing unit

Cardinal Health, a leading US provider of products and services supporting the health care industry, says it plans to divest its Pharmaceutical Technologies and Services (PTS) segment, a business that manufactures or packages 100 billion doses of medication every year for pharmaceutical and biotechnology firms, employs approximately 10,000 at more than 30 facilities worldwide and generates $1.8 billion in revenue.

The company said the decision was made to focus its capabilities and resources to better serve health-care provider customers, such as hospitals and pharmacies.

Kerry Clark, chief executive of Cardinal Health, said that, "while synergies clearly exist between PTS and our other businesses, we believe there is greater customer and shareholder value in the expansion of our supply-chain and medical and clinical products businesses domestically and internationally. These segments align with our core competencies and customers, and we see significant opportunities for future growth and improved return on capital."