Jan 30 (Reuters) - Drug distributor Cardinal Health ( CAH )

on Thursday raised its fiscal 2025 adjusted profit

forecast as strong demand for costly specialty medicines and

branded drugs drove sales at its pharmaceuticals unit.

U.S. drug distributors are strengthening their position in

the specialty medicine market, which focuses on treating complex

diseases like rheumatoid arthritis and cancer, attracted by the

lucrative profit potential of these products.

Earlier this month, Cardinal said it expects annual profit

to be at the higher end of its previous forecast range.

The company now expects an adjusted profit of $7.85 to $8.00

per share, compared to its previous range of $7.75 to $7.90. The

midpoint of which falls below analysts' expectations of $7.86

per share, according to LSEG data.

Cardinal sources a substantial amount of its revenue from

the pharmaceutical and specialty solutions unit, through which

it distributes branded and generic drugs, specialty medicines

and over-the-counter healthcare and consumer products.

The company has been actively seeking to diversify beyond

pharmaceutical distribution and, in 2024, made a series of

strategic acquisitions to enter higher-growth healthcare sectors

such as cancer care, gastroenterology, and at-home healthcare

solutions.

This follows the loss of a major contract with UnitedHealth

Group's ( UNH ) pharmacy benefit management unit OptumRX in

2024.

On an adjusted basis, Cardinal Health ( CAH ) reported a profit of

$1.93 per share for the quarter, beating analysts' estimates of

$1.76 per share, according to LSEG data.

The Ohio-based company's second-quarter total sales came in

at $55.26 billion compared to analysts' estimates of $55.02

billion.