On Monday, McKesson Corporation has agreed to acquire a controlling stake in the business and administrative services division of Florida Cancer Specialists & Research Institute, a privately-held operator of cancer clinics. This strategic move is designed to strengthen McKesson’s oncology portfolio, boosting its position in community-based cancer care. As part of the deal, the leading drug distributor will be disbursing approximately $2.49 billion in cash for a significant 70% stake in a segment known as the Community Oncology Revitalization Enterprise Ventures, or Core Ventures.
It's noted that the physicians from Florida Cancer Specialists will maintain a minority share within the organizational structure, ensuring their continued influence in operations. "This milestone marks an important step forward in our efforts to advance community-based oncology care," said Brian Tyler, Chief Executive Officer of McKesson, in a unified statement regarding their strategic move.
Importantly, this acquisition is pending approval from regulatory bodies, emphasizing the importance of compliance in such a significant business transaction. Florida Cancer Specialists has established itself as a prominent medical practice operating nearly 100 locations across Florida and employing over 250 physicians.
With this partnership, the practice will remain independently owned while gaining entry into McKesson's expansive US oncology network. This transition will facilitate access for Florida Cancer Specialists to a broader range of oncology care products and services, which are crucial for patient care. Nathan Walcker, CEO of Florida Cancer Specialists, expressed excitement about the collaboration: "The US oncology network and Florida Cancer Specialists share a mission, aiming to strengthen patient-centered cancer care in the community to improve outcomes.
We are thrilled to partner with McKesson and join the network." Upon completion of the acquisition, the organization will become an integral part of McKesson’s oncology platform, with implications for how financial metrics are reported, specifically recording within the US pharmaceutical segment of McKesson's operations. Earlier this month, McKesson reported an annual revenue increase of 6% for its fiscal first quarter, totaling $79.28 billion, with growth primarily emanating from the US pharmaceutical sector.
Subsequently, the company adjusted its earnings outlook for the full year, projecting adjusted earnings per share (EPS) to range between $31.75 and $32.55, adjusted up from previous estimates of $31.25 to $32.05. The current consensus forecast on Capital IQ estimates normalized EPS at $32.13. As a result of these developments, McKesson’s stock experienced minor fluctuations, closing at 551.81 with a change of -0.35, reflecting a percent change of -0.06..