Nov 1 (Reuters) - Cardinal Health ( CAH ) raised its

2025 adjusted profit forecast on Friday as strong demand for

costly specialty medicines and branded drugs drove sales at its

pharmaceuticals unit, sending the shares of the company up

nearly 4% in premarket trading.

Drug distributors have been trying to diversify their

operations and gain better footing in the specialty medicines

market, focusing on treatments for complex conditions like

rheumatoid arthritis and cancer, which have seen a growing

demand in the United States.

The company struck a $1.12 billion deal in September to buy

community cancer center operator Integrated Oncology Network to

join its rivals McKesson and Cencora ( COR ) in

expanding into cancer care.

"The strength and resiliency of our largest and most

significant business continues to shine, giving us confidence to

raise our fiscal 2025 enterprise guidance only a quarter into

the year," CEO Jason Hollar said in a statement.

The company now expects 2025 adjusted earnings per share of

$7.75 to $7.90, compared with its previous forecast of $7.55 to

$7.70. Analysts were expecting an annual profit of $7.63 per

share, according to data compiled by LSEG.

Cardinal Health ( CAH ) expects 4% to 6% profit growth for the

pharmaceutical and specialty solutions unit, compared with 1% to

3% growth forecast previously.

The company derives a substantial portion of its revenue

from the unit, which brought in sales of $48 billion in the

first quarter ended Sept. 30. The unit distributes branded and

generic drugs, specialty medicines, and over-the-counter

products.

"Cardinal Health ( CAH ) started off fiscal year 2025 with a strong

quarter, surpassing a fairly high bar heading into the print,"

Leerink Partners analyst Michael Cherny wrote in a note.

Total revenue in the quarter came in at $52.3 billion,

beating analysts' average estimates of $50.9 billion.

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

$1.88 per share, beating expectations of $1.62 apiece.