McKesson Corporation, a leading international healthcare services and information technology company, announced today that it has signed definitive agreements to purchase Vantage Oncology, LLC, a leading national provider of radiation oncology, medical oncology and integrated cancer care, and Biologics, Inc., an oncology pharmacy services company.
The combined transactions, valued at $1.2 billion, will be funded by a mix of cash and incremental debt and are expected to close in the first quarter of Fiscal 2017, subject to customary closing conditions, including necessary regulatory clearances. Following the close of the transactions, both Vantage and Biologics will become part of McKesson’s Specialty Health business.
McKesson expects the combined impact of these transactions to be approximately 11 cents accretive to adjusted earnings per diluted share in Fiscal 2017.
Collectively, these acquisitions will increase McKesson’s specialty pharmaceutical distribution scale, oncology-focused pharmacy offerings, solutions for manufacturers and payers, and scope of community-based oncology and practice management services available to providers and patients.
“McKesson is committed to the success of our community oncology partners and customers and we believe the acquisitions of Vantage and Biologics complement our holistic approach to providing best–in-class care for oncology patients,” said John Hammergren, chairman and chief executive officer, McKesson Corporation. “These investments will broaden McKesson’s practice management services and solutions that allow oncologists to focus on providing excellent patient care and provide additional support solutions that enhance care delivery for patients. We will also be able to offer additional value-added services to our manufacturer partners, expand our reach and pharmaceutical distribution scale, and provide care management and care coordination for payers as the industry moves towards value-based reimbursement models,” concluded Hammergren.
Vantage will broaden the company’s scale in radiation oncology management services, adding more than 50 cancer centers across 13 states. Vantage operates a practice management model through joint ventures and shares profits with their partner physicians and hospitals. Vantage’s model of comprehensive oncology management services, including its focus on radiation oncology and urology, will complement and strengthen the existing offerings of McKesson and The US Oncology Network, keeping the business health of community-based oncology practices strong, while allowing patients to access the care they need in the most efficient and cost effective way.
Biologics will extend McKesson’s oncology expertise across the continuum of care for patients, allowing the company to engage its manufacturer partners in new ways and to enhance its value proposition to providers, patients and payers. The high-touch specialty pharmacy model provides controlled dispensing channels, including rapid and traceable pharmaceutical delivery solutions, increased analytics, and services for oncology patients, providing seamless care management.
“Vantage’s breadth and expertise in radiation oncology operations will allow us to expand our capabilities for all of our integrated cancer care providers, enhancing our industry-leading position in community oncology and value-based cancer care,” commented Paul Julian, executive vice president and group president, Distribution Solutions. “And Biologics positions us well as manufacturers bring new innovative oncology products to the market and need the value-added services that McKesson provides.”
Together, McKesson Specialty Health, The US Oncology Network, Vantage and Biologics will provide our oncology partners a best-in-class platform and a robust suite of offerings and services that can be tailored to meet each patient’s needs, allowing providers to focus on delivering the highest quality care and best outcomes at the lowest possible cost.
Source : mckesson.com