McKesson Eyes $2.25B Precision Medicine Deal

M&A · Partnership
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Summary · why it matters

McKesson is moving forward with its planned $2.25 billion acquisition of Precision Medicine Group, a deal that would expand its oncology and biopharma services. The company discussed the transaction during a presentation with Wells Fargo analyst Stephen Baxter, saying it would add clinical-trial capabilities, including biomarker-focused trials, and complement its existing assets like Sarah Cannon, Ontada, and the U.S. Oncology Network. Precision Medicine Group also brings a more established contract research organization, or CRO, capability focused on oncology, rare disease, immunology, and cell and gene therapy. McKesson's CFO, Kenny Cheung, said the company expects the deal to create incremental value for biopharma partners and will provide more details on earnings accretion as the transaction progresses. In the first quarter, McKesson's Oncology and Multi-Specialty segment saw revenue grow about 33% and adjusted operating profit rise about 41%, while the company reiterated plans to return roughly $5 billion to shareholders this year.

Impact on stocks 2

Health Care · 1 stocks
McKesson Corporation
MCK
▲ PositiveCapitalrelevance

McKesson is acquiring Precision Medicine Group for $2.25B, expanding its oncology and biopharma services.

Financials · 1 stocks

Theme Impact 1

Off-coverage companies 1

Precision Medicine Group, LLCPrivate▲ Positive
Capitalrelevance

Precision Medicine Group is the acquisition target, which would bring CRO capabilities and clinical-trial expertise.

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