An agreement to this effect was signed between both the companies.
As per the agreed terms, Cardinal Health will build a 64,000ft2 facility in Indianapolis for the production of Xofigo, which will primarily be distributed in the US and Canada.
Bayer claims Xofigo is an alpha-particle-emitting radioactive therapeutic agent for the treatment of patients with castration-resistant prostate cancer, symptomatic bone metastases and no known visceral metastatic disease.
Cardinal Health Nuclear Pharmacy Services business president Tiffany Olson said: "This new agreement presents us with an excellent opportunity to leverage our unmatched expertise in the nuclear pharmacy industry to expand access to a therapeutic agent.
"We look forward to continuing to strengthen our relationship with Bayer HealthCare, and to developing innovative services to expand the use of radiopharmaceuticals in the United States and Canada."
The proposed Cardinal Health manufacturing facility is expected to be completed in 2017 and it will employ close to 85 people.
In addition, the current manufacturing site in Norway will continue to supply Xofigo across the world.