Cardinal Health to acquire Integrated Oncology Network, a physician-led independent community oncology network

PRNewswire 20-Sep-2024 9:15 AM

• Transaction demonstrates Cardinal Health's continued strategic investment in specialty and oncology, underscores commitment to independent community healthcare providers 
• Accelerates the development of Navista oncology practice alliance, adding more than 100 providers at more than 50 community-based sites delivering broad-reaching oncology and urology care across 10 states

DUBLIN, Ohio, Sept. 20, 2024 /PRNewswire/ -- Cardinal Health (NYSE:CAH) announced today that it has entered into a definitive agreement to acquire Integrated Oncology Network (ION), a physician-led independent community oncology network, for $1.115B in cash. ION includes more than 50 practice sites in 10 states representing more than 100 providers with extensive reach into the local communities they serve. ION supports a complete continuum of care across its member sites including medical oncology, radiation oncology, urology, diagnostic testing and other ancillary services.

The transaction builds on Cardinal Health's commitment to helping community healthcare providers maintain their independence. As part of the transaction ION practices will become members of Navista, Cardinal Health's oncology practice alliance, and ION practice management and practice growth services will become part of Navista's advanced services and technology offering. ION practices will also have access to Navista's advanced analytics capabilities that leverage artificial intelligence as well as deep expertise from Specialty Networks' PPS Analytics and SoNaR technology solutions to generate actionable clinical and business insights.

"Driving growth in specialty continues to be a top priority, and we've made investments to expand our offerings through both Navista and our acquisition of Specialty Networks," said Jason Hollar, CEO, Cardinal Health. "With their proven model providing extensive support of community oncology across the cancer care continuum and healthcare ecosystem, we're confident Integrated Oncology Network will further accelerate our oncology strategy and enable us to create value for providers and patients."  

ION's business model and services are flexible and meet member practices where they are. Its support services include revenue cycle management, payor relations, physician recruitment, practice marketing, finance, accounting, human resources and information technology. Taken together with Navista offerings such as its technology platform and value-based care and ancillary services, ION complements and will expand Cardinal Health's holistic suite of clinical and practice management solutions designed to support independent community oncology practices.

"Integrated Oncology Network and Cardinal Health share a mission of helping community oncology practices deliver world-class patient care and a world-class patient experience to patients and families close to home," said Barry Tanner, CEO, Integrated Oncology Network. "This partnership will give community practices the tools and technology they need to enhance and grow that mission and make a positive impact on patient outcomes."

"By joining forces, Integrated Oncology Network and Cardinal Health are making an exciting commitment to community oncology and, most importantly, to the patients we serve across the country," said Jedidiah Monson, MD, founding partner and president of ION member practice California Cancer Associates for Research & Excellence (cCARE). "By joining Navista, cCARE can access the advanced services and technology we need to remain focused on providing high-quality, lower-cost patient-centered cancer care while staying independent—for the good of our patients, our practices and our communities."

Cardinal Health's Pharmaceutical and Specialty Solutions segment operates one of the largest pharmaceutical supply chains in the U.S. with strategically located distribution centers that enable fast and efficient delivery anywhere in the country. Through its Specialty business, Cardinal Health provides reliable distribution and advanced technology solutions to community-based practices across the nation.

This transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. The transaction is expected to be accretive to non-GAAP earnings per share after 12 months following close.

About Cardinal Health  
Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities. With more than 50 years in business, operations in more than 30 countries and approximately 48,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com. 

About Integrated Oncology Network  
Integrated Oncology Network partners directly with physicians, hospitals and other healthcare providers to offer the latest services and technologies to their patients. Founded in 2008, ION has grown to more than 50 centers across the country, providing a complete and integrated continuum of care including diagnostic testing, radiation oncology, medical oncology, urology and other ancillary services. For more information, visit www.ionetwork.com.

Contacts   
Media: Andrea Bunce, Andrea.Bunce@cardinalhealth.com and (614) 553-3853
Investors: Matt Sims, Matt.Sims@cardinalhealth.com and (614) 553-3661 

Cautions Concerning Forward-Looking Statements  
This news release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook, and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include risks associated with our planned acquisition of Integrated Oncology Network, including the risk that we may not receive required regulatory approval or otherwise fail to complete the acquisition and the risk that we may fail to realize the anticipated strategic and financial benefits. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This news release reflects management's views as of September 20, 2024. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this news release can or will be achieved or completed. 

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SOURCE Cardinal Health