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McKesson to Buy Precision Medicine in $2.25 Billion Deal

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McKesson to Buy Precision Medicine in $2.25 Billion Deal

McKesson (MCK) has agreed to acquire Precision Medicine in a transaction worth roughly $2.25 billion as part of the drug distributor's efforts to strengthen its clinical research and commercialization services.

Precision Medicine provides clinical research and biopharma commercialization services, McKesson said Tuesday.

"This acquisition represents another meaningful step in advancing our oncology and multispecialty strategy," McKesson Chief Executive Brian Tyler said in a statement. "Precision Medicine Group brings complementary capabilities that will enhance our clinical research and commercialization services, strengthen clinical trial execution, and broaden our clinical service offerings."

Regulatory approval is required to complete the deal, following which Precision Medicine will report within McKesson's oncology and multispecialty segment.

"Joining McKesson provides a compelling opportunity to extend the impact of our clinical and commercial expertise," Precision Medicine CEO Margaret Keegan said. "Together, we will bring a broader set of capabilities to biopharma companies, supporting them through the development and commercialization process."

Shares of McKesson edged up 1.3% in Tuesday trade, taking the stock's year-to-date gain to 7.9%.

Earlier in August, McKesson reported better-than-expected fiscal first-quarter results, with the oncology and multispecialty business posting an annual revenue gain of 33%. At the time, the company said it expected adjusted earnings in a range of $44.20 to $45 per share for fiscal 2027, indicating growth of 13% to 15%. The current consensus on FactSet is for $44.61.

During an earnings call with analysts earlier this month, Chief Financial Officer Kenny Cheung told analysts that "there'll be some M&A along the way," according to a FactSet transcript.

Last week, RBC Capital Markets said that McKesson's specialty drug exposure and its integrated business model should help offset regulatory pricing pressure.

In June, Apollo Global Management (APO) invested $1.25 billion in McKesson's medical-surgical solutions unit for a 13% stake in the business. McKesson plans to separate the division into a publicly traded company.

Price: $884.73, Change: $+10.94, Percent Change: +1.25%

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