May 1 (Reuters) - Drug distributor Cardinal Health ( CAH )

on Thursday raised its fiscal 2025 adjusted profit

forecast for the fourth time, betting on strong demand for

costly specialty medicines and branded drugs.

High profit margins for specialty medicines, used to treat

complex conditions like rheumatoid arthritis and cancer, have

benefited drug distributors.

Sales of specialty medicines have grown a

high-single-digit percentage in the first quarter of 2025,

analysts at J.P. Morgan said in April, citing data from contract

research firm IQVIA.

Cardinal Health ( CAH ) now expects an adjusted profit of $8.05 per

share to $8.15 per share for fiscal year 2025 ending in June 30,

up from prior range of $7.85 per share to $8.00 per share.

Analysts were expecting a profit of $7.96 per share, according

to data compiled by LSEG.

Most of the Ohio-based company's revenue comes from its

pharmaceutical and specialty solutions unit, through which it

distributes branded and generic drugs, specialty medicines and

over-the-counter healthcare and consumer products.

The unit brought in sales of $50.43 billion in the third

quarter ended March 31. Analysts were expecting sales of $49.81

billion.

Despite the changing macroeconomic environment, Cardinal

said it expects double-digit growth in its adjusted earnings for

the fiscal year 2026.

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

$2.35 per share for the quarter, beating analysts' estimates of

$2.17 per share.

But the company's third-quarter total sales came in at

$54.89 billion, missing analysts' estimates of $55.35 billion.