Cardinal Health report highlights cost savings and provider confidence in biosimilars

Rhea-AI Summary

Cardinal Health (NYSE: CAH) released its 2026 Biosimilars Report highlighting measured cost savings and high provider confidence in biosimilars across physician practices. The report cites $56 billion in U.S. savings since 2015 and projects up to $181 billion in future savings if market and policy conditions align.

Key metrics: 99% of surveyed providers feel comfortable explaining biosimilars, oncology biosimilars reach an average 81% market share within five years, and nearly 25 biosimilars are expected to receive FDA approval over the next two years.

Positive

• Generated $56 billion in U.S. healthcare savings since 2015
• 99% of surveyed providers comfortable explaining biosimilars to patients
• Oncology biosimilars achieve an average 81% market share within five years
• Near-term pipeline: nearly 25 biosimilars expected FDA approval in two years
• Projected up to $181 billion in future savings with supportive policy

Negative

• Provider uptake hinges on reimbursement stability; 68% rate consistent reimbursement as very important
• Preference for set discount models (59%) signals risk from incremental price disruption
• Realization of $181 billion projected savings requires favorable market and policy conditions

Key Figures

Cumulative savings: $56 billion Practices surveyed: 101 physician practices Provider comfort: Nearly 99% +5 more

8 metrics

Cumulative savings $56 billion Healthcare savings from biosimilars since 2015

Practices surveyed 101 physician practices Source base for 2026 Biosimilars Report insights

Provider comfort Nearly 99% Providers feeling comfortable explaining biosimilars to patients

Reimbursement importance 68% Practices rating consistent reimbursement as “very important”

Discount model preference 59% Practices favoring set discount models for biosimilars

Oncology share 81% market share Average oncology biosimilar share within five years of launch

Upcoming biosimilars Nearly 25 Expected FDA biosimilar approvals over next two years

Future savings potential $181 billion Potential future healthcare savings from biosimilars under favorable conditions

Market Reality Check

Price: $225.97 Vol: Volume 1,157,469 vs 20-da...

low vol

$225.97 Last Close

Volume Volume 1,157,469 vs 20-day average 1,762,956; relative volume at 0.66 indicates lighter-than-usual trading ahead of this report. low

Technical Shares at $224.82, about -2.6% below the $230.81 52-week high and well above the 200-day MA of $176.11, reflecting a strong pre-news uptrend.

Peers on Argus

CAH traded near its 52-week high with modest gains, while key distributor peer C...

2 Up

CAH traded near its 52-week high with modest gains, while key distributor peer COR rose 1.56%, MCK rose , HSIC fell 1.26%, and ALC gained 0.24%. Momentum scanner flagged PHG and ALC with moves around 1%, but CAH’s specific biosimilars report points to largely company-specific positioning rather than a clear sector-wide move.

Historical Context

5 past events · Latest: Feb 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 12	Dividend declaration	Positive	-4.1%	Board approved quarterly dividend of $0.5107 per share from capital surplus.
Feb 05	Earnings beat & guidance	Positive	+9.8%	Strong Q2 FY2026 results and higher non-GAAP EPS outlook with buybacks.
Jan 13	Outlook raised, conference	Positive	+2.8%	Raised FY2026 EPS outlook and highlighted specialty and BioPharma growth.
Jan 06	Earnings date set	Neutral	+1.5%	Announced date and webcast details for Q2 FY2026 earnings release.
Nov 04	Dividend declaration	Positive	+0.7%	Declared $0.5107 per share dividend payable January 15, 2026.

Pattern Detected

Recent fundamentally positive updates (outlook raises, strong earnings) generally saw positive price reactions, while routine dividend announcements produced mixed responses, including one notable decline.

Recent Company History

Over the last several months, Cardinal Health reported multiple positive developments. On Nov 4, 2025 and Feb 12, 2026, its Board approved quarterly dividends of $0.5107 per share, with mixed stock reactions. The company twice raised its fiscal 2026 non‑GAAP EPS outlook, including an update tied to the J.P. Morgan conference on Jan 13, 2026 and Q2 results on Feb 5, 2026, when it reported revenue of $65.6 billion and non‑GAAP EPS of $2.63. These events frame today’s biosimilars-focused report within an ongoing growth and capital-return story.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-08-12

An effective Form S-3ASR shelf dated August 12, 2025 allows Cardinal Health to issue common or preferred shares, unsecured debt securities, units, or combinations thereof for general corporate purposes, with specific terms set in future prospectus supplements. The shelf remains effective through August 12, 2028, and no usage has been recorded in the recent 424B history.

Market Pulse Summary

This announcement underscores Cardinal Health’s role in the expanding biosimilars ecosystem, citing ...

Analysis

This announcement underscores Cardinal Health’s role in the expanding biosimilars ecosystem, citing more than $56 billion in savings since 2015 and oncology biosimilars reaching an average 81% market share within five years. With nearly 25 expected FDA biosimilar approvals and potential future savings up to $181 billion, the report emphasizes provider confidence and the importance of reimbursement stability. Investors may monitor how Cardinal Health leverages these trends alongside its effective S-3ASR shelf and recent earnings strength.

Key Terms

biosimilars, oncology, fda

3 terms

biosimilars medical

"New analysis shows biosimilars are projected to strengthen cost savings..."

Biosimilars are medicines made to be highly similar to an already approved biological drug produced from living cells, with no meaningful differences in safety or effectiveness. They matter to investors because they introduce lower‑cost competition to expensive biologic treatments—similar to how generic drugs compete with brand drugs—but involve more complex manufacturing, regulatory review and patent risk, which can affect market share, pricing and profit margins across the sector.

oncology medical

"...with oncology leading in adoption and accessibility gains."

Oncology is the branch of medicine focused on understanding, diagnosing, and treating cancer, including the development and testing of drugs, therapies, and screening methods. It matters to investors because advances, trial results, regulatory approvals, or setbacks in cancer research can dramatically change the value of companies and the size of potential markets—think of oncology news as weather reports that help investors steer financial decisions in a high-stakes field.

fda regulatory

"Over the next two years, we expect FDA approval of nearly 25 new biosimilars..."

The FDA is the U.S. federal agency that evaluates and approves medical drugs, devices, biological therapies and certain foods; think of it as the gatekeeper that decides whether a medical product is safe and effective for patients. For investors, FDA decisions determine whether a company can sell a product, affect expected revenue and introduce regulatory risk, so approvals, rejections or safety warnings can quickly move a company's valuation and stock price.

AI-generated analysis. Not financial advice.

New analysis shows biosimilars are projected to strengthen cost savings and provider confidence across the healthcare ecosystem, with oncology leading in adoption and accessibility gains.

DUBLIN, Ohio, Feb. 24, 2026 /PRNewswire/ -- Cardinal Health (NYSE: CAH) today released its 2026 Biosimilars Report: Driving access and patient outcomes in physician practices, which highlights the substantial savings biosimilars have delivered to the U.S. healthcare system and the strong confidence providers have in these treatments.

"Since 2015, biosimilars have generated more than $56 billion in healthcare savings and have expanded access to high-quality therapies while generating significant value for the healthcare system," said Fran Gregory, PharmD, MBA, vice president of Emerging Therapies at Cardinal Health. "As physician practices continue to adopt these products, we remain focused on helping providers navigate reimbursement, streamline product launches and ensure patients have access to effective treatment options."

The report draws from insights gathered from 101 physician practices nationwide. Nearly 99% of providers surveyed said they feel comfortable explaining biosimilars to patients, underscoring the strong clinical confidence supporting these therapies. Predictable reimbursement remains essential for sustained adoption: 68% of practices rated consistent reimbursement as "very important," while 59% favored set discount models over incremental price reductions that can disrupt reimbursement stability.

The report also explores a major advancement in biosimilar's trajectory: the acceleration of oncology biosimilars, which now reach an average 81% market share within five years of launch. Over the next two years, we expect FDA approval of nearly 25 new biosimilars in therapeutic areas including immunology, oncology and retina.

Key findings from the 2026 Biosimilars Report include:

• Strong provider confidence and continued willingness to adopt biosimilars in clinical practice.
• Oncology leads in biosimilar advancement, delivering rapid adoption and substantial cost savings, with additional cancer biosimilars expected to expand accessibility.
• Reimbursement stability as a defining factor in provider uptake and the potential of a "biosimilar void."
• The opportunity to generate up to $181 billion in future savings with the right market and policy conditions.

Read the full 2026 Biosimilars Report.

About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals and specialty products; a global manufacturer and distributor of medical and laboratory products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; and a provider of performance and data solutions. Learn more at cardinalhealth.com and in our Newsroom.

Contacts
Media: Casey Sudzina, Casey.Sudzina@cardinalhealth.com and (614) 536-3220 and
Investors: Matt Sims, Matt.Sims@cardinalhealth.com and (614) 553-3661 

 

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SOURCE Cardinal Health

FAQ

How much has Cardinal Health (CAH) reported biosimilars have saved the U.S. healthcare system?

Cardinal Health reports biosimilars have generated $56 billion in U.S. savings since 2015. According to Cardinal Health, this figure reflects accumulated cost reductions and increased access across multiple therapeutic areas cited in the 2026 report.

What adoption levels did Cardinal Health (CAH) find for oncology biosimilars within five years of launch?

The report finds oncology biosimilars reach an average 81% market share within five years. According to Cardinal Health, oncology leads adoption, contributing notable accessibility gains and rapid uptake in physician practices.

What do surveyed physician practices say about reimbursement and biosimilar uptake according to Cardinal Health (CAH)?

Surveyed practices say reimbursement stability is critical, with 68% calling it very important. According to Cardinal Health, inconsistent reimbursement and incremental pricing create adoption risks and could produce a destabilizing "biosimilar void."

How many new biosimilars does Cardinal Health (CAH) expect to be approved by the FDA in the next two years?

Cardinal Health expects nearly 25 new biosimilars to gain FDA approval over the next two years. The company highlights these approvals across immunology, oncology and retina as drivers of expanded treatment options.

What future savings projection does Cardinal Health (CAH) provide for biosimilars and what conditions apply?

The report projects up to $181 billion in potential future savings with proper market and policy conditions. According to Cardinal Health, achieving this requires predictable reimbursement, supportive policy, and continued provider adoption.

How confident are providers in explaining biosimilars to patients, per Cardinal Health (CAH)?

Cardinal Health reports that 99% of surveyed providers feel comfortable explaining biosimilars to patients. This high confidence level is cited as a key enabler of clinical adoption in physician practices nationwide.