Investing.com-- Cardinal Health Inc (NYSE:CAH) said on Monday that it will acquire majority stakes in two separate companies, the latest of its buying spree this year as the drug distributor looks to increase its presence in specialty medicines .
Cardinal said it will buy a majority stake in GI Alliance, a gastroenterology management services operation, for $2.8 billion in cash, and will buy the Advanced Diabetes Supply Group for $1.1 billion in cash.
The company said in a statement that the acquisitions were aimed at growing the firm’s specialty business, which is a “top priority.”
The deals are the latest in the firm’s push into the specialty medicine market, which has become a lucrative sector due to high profit margins. Cardinal had earlier this year bought community cancer center operator Integrated Oncology Network for $1.12 billion.
The push into specialty medicines has yielded results, with the firm clocking strong earnings in the September quarter. Cardinal had recently also hiked its profit outlook for fiscal 2025.