McKesson (MCK) continues to face medium-term headwinds from reductions in employers' coverage of GLP-1 medications, which could be partially offset by the Medicare GLP-1 Bridge program, RBC Capital Markets said in a Monday note.
The program has enrolled about 600,000 Medicare beneficiaries since its launch in July and is expected to boost income for the company's prescription technologies solutions, the brokerage said. RBC estimates about a $77 million to $102 million contribution to the segment's fiscal 2027 operating income, including second prior authorizations.
"Gains from the Bridge program will be almost entirely offset by reduced employer coverage," RBC noted. A decline in prior authorizations of 15% to 20% would risk about $50 million to $100 million in the prescription technologies solutions segment's operating income, RBC added.
RBC maintained its sector perform rating on McKesson, with a price target of $845.
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