Prescription for a Turnaround

On Jan. 28, Cardinal announced that its second-quarter revenue increased 3%, to $25 billion, supplemented by a 38% increase in profit on the medical-supply side. But perhaps even better news came when AmerisourceBergen and McKesson unveiled their earnings a few days earlier. Whereas a year ago, one of the two might have boasted about winning some of Cardinal's business, this time around, says Gill, "the same competitor is saying the exact opposite: 'We think all of our competitors are in good places, and given the stickiness, we don't expect any big accounts to change hands.'" In other words, Cardinal is a healthy competitor again.