(Reuters) – Cardinal Health Inc’s (CAH.N) quarterly profit missed analysts’ expectations as inventory and cost issues hurt its Cordis medical device unit, and the U.S. drug distributor said it saw prices of generic drugs fall more than expected. The company’s shares fell 18.8 percent to touch a more than 4-and-a-half year low of $52.93, and Cardinal’s commentary on generic drug prices dragged down rivals McKesson Corp (MCK.N) and AmerisourceBergen Corp (ABC.N). “We recognize that today’s results did not meet your expectations or ours,” Chief Executive Officer Michael Kaufmann said on a conference call. The company highlighted ongoing operational difficulties regarding inventory at its Cordis business, which it bought for $1.9 billion in 2015 from Johnson & Johnson (JNJ.N) to expand its medical device offerings and “build an ex-U.S. infrastructure”. “Granted, building of infrastructure has been more expensive than we thought, it hasn’t gone as well as we thought,” Kaufmann said. The company said it took a large inventory write-off in the third quarter, as it struggled to sell its medical devices before their expiration dates. The Cordis business includes catheters and stents and other equipment used in cardiology and endovascular procedures. Cardinal Health said on the conference call it expects… Read full this story
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