UPS Aims to Turn Health-Care Business Into $20 Billion Lifeline

United Parcel Service Inc. has been quietly building a health-care empire to offset stagnating revenue in its core package-delivery business.

Specialized logistics services, unlike standard brown-box delivery, have appealing profit margins. A customer who needs injectable medicines shipped overnight in a refrigerated box is willing to pay a hefty premium.

“You’re maybe getting $300 on that shipment at the same cost of delivering, say, a J. Crew box of socks,” said Anthony de Ruijter, an analyst at Third Bridge, a global research firm.

UPS Healthcare was a $10 billion business at the end of 2023, accounting for about one-tenth of total revenue. The company aims to double that ...