Cardinal's New Surgical Mask

Cardinal Health (CAH - Analyst Report) recently revealed the marketing of its Smart-Seal surgical mask created for reduction of fog on eyewear and better fitment. The mask represents Cardinal’s latest addition to its line-up of facial protection products.

It incorporates vital parameters from the company’s Secure-Gard mask besides providing improved features for fog protection and fitment. The company stated that it created the mask keeping in mind that users consider fogging to be a problem.

The Smart-Seal surgical mask incorporates a fog-limiting vapor barrier. It has a sizeable chamber with a couple of rows of sonic bonds that are useful in maintaining the filter of the mask away from the user’s face.

The Smart-Seal surgical mask provides a special seal around the user’s mouth and nose by utilizing a patent-pending design. Its novel design prevents gaps from occurring between the user’s face and mask. The mask reduces the risk of contamination in the environment surrounding the operating room. It performs well when tested for fluid-resistant protection, bacteria filtration efficiency and particulate filtration efficiency.

Cardinal Health is ranked in the Fortune 500. With over $100 billion in annual sales, Cardinal Health remains one of the largest distributors of pharmaceuticals and medical supplies in the U.S., with a diversified product portfolio, which may partly insulate it from the current economic uncertainty.

The company stands to gain from the gradual shift in mix from the bulk to the higher-margin non-bulk sector of the Pharmaceutical segment. It is also riding the generic wave. Overall, Cardinal is benefiting from a spate of tuck-in acquisitions and capital deployment strategies.

However, the company faces tough competition across all its business segments, which may continue to pressure pricing and margins. Its major competitors in the pharmaceutical supply chain segment include McKesson Corp. (MCK - Analyst Report) and AmerisourceBergen Corp. (ABC - Analyst Report). We currently have a long-term Outperform rating on Cardinal. The stock currently retains a Zacks #3 Rank, which translates into a short-term Hold recommendation.