Cardinal Health boosts profit view banking on specialty drugs unit growth

June 12 (Reuters) - Drug distributor Cardinal Health CAH.N raised annual adjusted profit forecast on Thursday, banking on resilient demand for costly specialty medicines and branded drugs at its pharmaceuticals unit.

Demand for specialty medicines, which help treat complex conditions such as rheumatoid arthritis and cancer, have helped boost profits for Cardinal and peers Cencora COR.N and McKesson MCK.N in recent quarters.

The companies are also expanding their presence in the specialty medicines market by acquiring cancer center operators to diversify beyond drug distribution.

Cardinal now expects profit from its specialty medicines unit to grow 12% to 13% in fiscal 2025, compared with its previous projection of 11.5% to 12.5% growth.

It forecast annual adjusted profit per share to be between $8.15 and $8.20, compared with its previous range of $8.05 to $8.15. Analysts on average estimate $8.13 per share, according to data compiled by LSEG.

Leerink analysts said Cardinal's forecast was achievable and supported its durable long-term growth.

The drug distributor also issued preliminary forecast for fiscal 2026 adjusted profit per share at $9.10 to $9.30, while analysts' estimate $9.12.

Cardinal had said in May it expects a $200 million to $300 million hit to fiscal 2026 profit due to its exposure to U.S.-China tariffs.

The company will work with customers on price hikes and other alternative solutions to mitigate the levies, it had then said.

U.S. President Donald Trump said on Wednesday the United States will impose a 55% tariff on all Chinese imports, while China will impose 10% reciprocal tariffs.