US drug distributor Cardinal Health has signed a $1.9bn agreement to acquire a majority stake in Solaris Health from Lee Equity Partners.
The deal aims to expand the Specialty Alliance, the distributor’s multi-speciality management services organisation (MSO) platform, in which Cardinal will gain a stake of around 75%.
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The acquisition will also create the Urology Alliance, comprising a collaborative network of urology providers within Cardinal’s Specialty Alliance MSO, as well as resonate with plans to expand the delivery of urological patient care.
Cardinal’s Solaris buyout complements its recent acquisitions of Urology America, Potomac Urology, and Academic Urology & Urogynaecology, signalling its urologic strategy.
The transaction is expected to be completed by the end of this year, pending customary closing conditions.
Cardinal Health CEO Jason Hollar stated that growing the Speciality Alliance is a “top priority” for the company, with the latest urology purchase leaving it “well-positioned to meet the comprehensive needs of community urologists through the robust combined capabilities of the Specialty Alliance, Specialty Networks and Cardinal Health”.
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By GlobalDataResearch indicates there is a shortage of urologists in the US, with 62% of US counties lacking a practising urologist and just one new urologist entering the field for every ten retiring. The figures lead to challenges in the broader field, including delayed diagnoses, increased rates of advanced-stage conditions, and significant health disparities, with these particularly pronounced in rural communities.
GlobalData’s senior medical analyst Selena Yu foresees Cardinal’s acquisition as reflecting a shift from drug distribution with a “lower profit margin, towards higher margin speciality care in urology”.
Yu said: “MSOs help streamline backend work like billing and staffing to allow for physicians to focus on care.
“Additionally, with a large network of specialists, patients can receive care in the same region by different care specialists, which will reduce wait times and improve care continuity. Additionally, the Cardinal Health Alliance has other specialities like oncology specialists, which makes referrals more streamlined.”
Cardinal’s acquisition coincided with the release of its Q4 2025 financials. The company’s profits per share came in at $2.08, beating the forecasted $2.03, yet profits for the quarter came in at $60.2bn, below the $60.92bn forecast, prompting a pre-market stock drop of more than 11% on 12 August. Cardinal’s share price has since recovered to a drop of around 6% to $147.05 per share, down from $157.66 per share at market close on 11 August.
