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Kieran Gallahue, CareFusion CEO, on the company’s success as a standalone improving the efficiency of medical devices
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Our -- as a medical device maker care fusion of close to 8% after the company reported better than expected results last night.
And -- some really strong guidance for the upcoming fiscal year joining us now for an exclusive interview.
Is care fusion chairman and CEO.
Out here and gallon -- of care and congratulations.
Fiscal year revenue up 5%.
This is your first -- spun off from -- -- your stand on your own two feet by yourself.
I just feel.
-- feels great you know I'm I'm very proud of the team and it's it's nice when.
When investors and other recognized the progress that we're making the fact that we're we're a much stronger company today than we were at the beginning of the fiscal year so I feel great about the.
Did you do some really cool stuff you know use your products are out to reduce medication errors when being administers in the hospital for basically improving efficiencies.
Why -- the expectations for revenues for fiscal year two 2013 only from one to 3% increase.
That well I think when you look at the the global economies I think is prudent managers.
You need to be careful before you have bullish expectations about market growth and and part of what we laid out yesterday.
Is that we have been fundamentally investing in making our companies stronger we have been shifting investment -- research and development.
We have been shifting investment to put assets on the ground in markets that offer growth opportunities.
So we're doing all the right things for the long term but it's not prudent to be overly bullish on not economic rebounds in the short term is that we're we're we're doing the bulk.
You're you're actually it certainly have a good day that's sure number of -- -- today on the market.
But it does that president's health care law come into your hesitation and your -- going forward.
I mean -- going to be subject to that 2.3 percent medical device charges such surcharge aren't you.
Yes -- let's talk about each someone you know the Affordable Care Act to me is is more fuel the fire.
And transit -- seen around the -- right which is that regardless of what Kutcher and what we recognizes we've got to drive operational efficiencies we have to drive down.
The cost of health care but we can't do it in -- means that's gonna compromise patient safety.
So our strategy our solutions are targeted to help those health care providers drive operational efficiencies.
And do it in a way that improves patient safety.
So I think you know from my viewpoint our strategy.
Is that no regrets step right now organist seat regardless of changes in the loss with these costs and with regards to dad because these classic gonna take your -- yeah.
Inevitably right.
Well that's you know the -- the medical device tax you know quite frankly disappointing.
I want when you look at that -- the medical device industry it's it's -- crown jewel.
Within the American economy we tend to have wages well above the average.
We are net exporter.
So you know these the kinds of industries that you wanna see they're not -- -- the kinds of industries you -- tax.
All that being said you know we've built a very efficient organization.
Our short and long term guidance.
All the systems integration of those taxes -- and we're gonna keep focusing on building up -- -- capabilities around the globe.
It's almost contradictory right because your products are helping to make the system more efficient and yet -- being taxed.
I only have a few seconds left but these up performance metrics that you're gonna be that are being mandated.
We'll also hurt won't thing.
But look they're you know one of the hardest jobs in the world right now it's gotta be needed to be the CEO the hospital now so what we're trying to help them do.
-- understand how they can be more efficient implement systems.
That can help them manage their inventory.
Manage their people while the same time while they're gaining those efficiencies makes sure that they're improving patient safety so.
Now from our viewpoint we need to be part of the solution and help those provider.
First -- could be -- sweet spot for you can't gallon here congratulations and thanks for taking the time to be with us.
Thank you.
I with a need for cyber security continues to grow and invest -- -- on hand.
They can get a bit dangerous that's right -- there is more around that after break.
But first let's take a look at some of today's winners and losers let -- -- you stand up on top of over eight presents.
