Cardinal Health: A Detailed Timeline
1970s: Humble Origins in Ohio
1971: Robert D. Walter, aged 26, purchases the struggling Ohio food wholesaler Monarch Foods with a small group of investors for $135,000 cash and assumption of $1.3 million in debt.
Early 1970s: Walter renames the company Cardinal Foods, after Ohio's state bird. He focuses on turning the "also-ran" grocery distributor into a regional force.
Late 1970s: The food distribution industry undergoes rapid consolidation, putting pressure on smaller firms like Cardinal. Walter's diversification attempts, including a supermarket chain, have mixed success, and a salmonella outbreak creates further challenges.
1979: Sensing opportunity in the booming pharmaceutical trade, Cardinal Foods makes a pivotal shift by purchasing the Bailey Drug Company, a small drug distributor in Zanesville, Ohio, for $4.4 million. This marks Cardinal's decisive entry into pharmaceutical wholesaling.
1979: The name Cardinal Health is effectively born as the company shifts its focus entirely to healthcare, though the official adoption of the name would take a few more years.
1980s: Building a National Distribution Network
Early 1980s: Walter fully divests the old grocery operations to focus exclusively on healthcare.
1983: Robert D. Walter buys out his original investors and takes Cardinal Health public.
1980s: Cardinal Health embarks on a period of significant growth, acquiring regional drug wholesalers across the United States to build a national distribution network.
Mid-1980s: Cardinal Health embraces emerging computer technology, developing its own internal software for inventory, order, and delivery management, leading to increased efficiency and faster shipping times.
Late 1980s: Cardinal Health continues its acquisition strategy, expanding its reach into the Southeast and Mid-Atlantic regions.
1988: Cardinal Health divests its original food distribution business entirely, signifying its complete commitment to the healthcare sector.
1990s: Expansion and Diversification
Early 1990s: Cardinal Health is poised to become a top-tier U.S. healthcare company, continuing its acquisition-led growth strategy.
1991: Cardinal Health's annual sales reach $1 billion.
1994: Cardinal Health merges with Whitmire Distribution, a major wholesaler based in Texas, propelling Cardinal into the third national spot in the drug distribution industry and providing a significant foothold in the Western U.S.
1995: Cardinal Health diversifies beyond pure drug distribution with the acquisition of Medicine Shoppe International, the largest franchisor of independent retail pharmacies in the U.S., marking its first significant venture outside of wholesale distribution.
1996: Cardinal Health further diversifies into medical technology with the acquisition of Pyxis Corporation, a specialist in automated dispensing cabinets for hospitals, for $867 million.
1997: Cardinal Health acquires Owen Healthcare, a leading provider of pharmacy management services for hospitals, further integrating itself into healthcare provider operations.
February 1999: Cardinal Health makes a transformative acquisition of Allegiance Healthcare, a medical-products manufacturer and distributor spun off from Baxter International, for $5.4 billion. This establishes Cardinal's Medical segment alongside its Pharmaceutical segment.
1999: Cardinal Health's annual revenues skyrocket to $21 billion, making it one of the fastest-growing companies in America. By the end of the decade, it is ranked among the largest companies in the U.S.
2000s: New Millennium, New Challenges
2000: Cardinal Health enters the new millennium with record sales of over $25 billion annually and operations spanning five continents and 22 countries. It launches corporate and e-commerce websites.
2001: Cardinal Health employs nearly 50,000 people worldwide. It acquires Bindley Western Industries, a large pharmaceutical distributor, further consolidating its lead in drug wholesaling.
Early 2000s: Cardinal Health expands into specialty pharmaceuticals and nuclear pharmacy.
2002 (Implied): Cardinal Health acquires Syncor, becoming the operator of the nation's largest chain of radiopharmacies.
2006: After 35 years, founder Robert D. Walter prepares to step back from day-to-day management, inviting R. Kerry Clark to become CEO while Walter remains Chairman.
2008: Both R. Kerry Clark and Robert D. Walter retire, marking the end of Cardinal's founding era. George S. Barrett takes over as Chairman and CEO in September. Cardinal faces scrutiny from the DEA regarding suspicious opioid orders.
2009: George S. Barrett leads the spin-off of Cardinal's clinical and medical products segment into a new company called CareFusion, which includes Pyxis dispensing systems and other medical technology. Cardinal Health retains its core pharmaceutical distribution and medical consumables business. Cardinal launches its Outpatient Care division.
2008-2009: The Great Recession tests the resilience of the healthcare supply chain, but Cardinal's services remain in steady demand.
By 2010: Cardinal Health has a sharper focus on its Pharmaceutical and Medical segments and is one of the "big three" drug distributors in America.
2010s: Extending Reach – Specialty, Home, and Global Expansions
2010: Cardinal Health acquires Healthcare Solutions Holding, forming the basis of its Specialty Solutions division, and Kinray, a large independent drug distributor serving the New York area. It also acquires a majority stake in Yong Yu, a leading Chinese drug distributor.
2013: Cardinal Health forms Red Oak Sourcing, a joint venture with CVS Caremark, to become the largest generic drug sourcing entity in the U.S. It also acquires AssuraMed, a leading direct-to-home medical supplies distributor, for $2.07 billion, rebranding it as Cardinal Health at-Home Solutions.
2014: Red Oak Sourcing begins operations.
Mid-2010s: Cardinal Health China serves thousands of hospitals and pharmacies.
2015: Cardinal Health acquires Cordis, a cardiology and endovascular device manufacturer, from Johnson & Johnson for approximately $1.94 billion.
2016: Cardinal Health pays $44 million to settle allegations by the DEA regarding failure to report suspicious opioid orders.
2017: Cardinal Health sells its China business to Shanghai Pharma for $1.2 billion. It also agrees to acquire a suite of medical products from Medtronic for $6.1 billion, which closes in July 2017, roughly doubling the size of Cardinal's Medical segment.
2018: Mike Kaufmann takes over as CEO from George Barrett.
2018-2019: Dozens of lawsuits are filed against Cardinal Health and other distributors regarding their role in the opioid crisis.
2019: Cardinal Health opens the Fuse innovation center, focused on developing digital healthcare solutions.
2020: Frontline Support in a Global Pandemic
Early 2020: Demand for PPE surges due to the COVID-19 pandemic. Cardinal Health's Medical segment works to secure and distribute supplies.
March 2020: CEO Mike Kaufmann participates in a White House briefing, highlighting public-private coordination to address supply needs.
April 2021 (Retrospective): Cardinal Health is awarded a federal contract to manage a segment of the Strategic National Stockpile.
2020: Cardinal Health plays a significant role in distributing COVID-19 related medications and, later, vaccines. A recall of some Cardinal Health-branded surgical gowns occurs due to manufacturing issues.
Mid-2010s to Present: Innovation, Acquisition and Adversity (Continued)
July 2021: Cardinal Health, along with other distributors and Johnson & Johnson, agrees to a landmark $26 billion settlement to resolve most opioid lawsuits, with Cardinal's share being $6.4 billion to be paid over 18 years.
2021: Cardinal Health sells Cordis to a private equity firm.
2022: Jason Hollar becomes CEO of Cardinal Health, succeeding Mike Kaufmann. Cardinal Health acquires ScalaMed, a smart prescription management app.
2023: Cardinal Health announces a partnership with Zipline to trial long-range drone delivery of medical supplies in North Carolina.
Ongoing 2020s: Cardinal Health focuses on digital health, data analytics, AI, and innovations like drone delivery. It navigates the evolving healthcare landscape, including the rise of home-based care and personalised medicine. The company emphasises its role as a healthcare partner, providing solutions beyond just product distribution.
