Cardinal Health Inc. (CAH) has appointed a former Johnson & Johnson (JNJ) executive to lead its $9 billion medical products and services business as the health-care company seeks to diversify its businesses.
Donald M. Casey, 52, formerly led Johnson & Johnson's worldwide comprehensive care group before becoming CEO of a non-profit research institute aimed at finding low-cost technological health-care solutions.
"His track record of commercializing innovation, deep operational expertise and outstanding strategic leadership will be tremendous assets as we continue to grow our core businesses and expand our footprint," said Chief Executive George S. Barrett.
Casey will report to Barrett, starting April 16.
Cardinal Health, the second-biggest drug distributor in the U.S., has reported stronger revenue lately amid a string of acquisitions, as it seeks to reduce its dependence on major customers like CVS Caremark Corp. (CVS) and drug-store chain Walgreen Co. (WAG).
Its medical business, which provides medical and surgical products and services to hospitals, doctors' offices and other health care providers, is the smaller of Cardinal Health's core businesses. The segment reported a 9.4% revenue increase in the second quarter, but an 18% drop in profits on commodity price pressure and investment costs.
Casey was most recently the first CEO of the non-profit Gary and Mary West Wireless Health Institute, a research organization that seeks to lower the cost of health care through technological solutions. Casey will remain on the Institute's board of directors.
Casey also spent 24 years at Johnson & Johnson (JNJ), most recently leading its $10 billion comprehensive care group, which includes cardiovascular, diagnostic, diabetes and vision franchises.
The former head of the medical business, Mike Lynch, 51, is leaving in order to head his own company in the Chicago area.
Shares closed at $41.63 on Monday and were inactive premarket. The stock is up 2.5% so far this year.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208; firstname.lastname@example.org