McKesson will pay $1.2 billion to buy two oncology companies that are expected to bolster its specialty health segment.
The San Francisco-based healthcare giant will purchase Vantage Oncology, a national oncology provider based in Manhattan Beach, Calif., and Biologics, an oncology specialty pharmacy. The combined transactions are expected to close in the first quarter of fiscal 2017, pending customary closing conditions.
Vantage provides radiation oncology, medical oncology and integrated cancer care in over 50 treatment facilities in 14 states. The company focuses on radiation oncology and urology and manages practices through joint ventures with physicians and hospitals.
McKesson Thursday said it hoped the Vantage deal will build upon its existing subsidiary, the U.S. Oncology Network. That would expand its practice management services and allow McKesson to provide care management and care coordination for payers.
Biologics will help McKesson increase the scale of its specialty pharmacy distribution business and improve its oncology-focused pharmacy offerings, as well as allow it to offer more value-added solutions for manufacturers and payers. Specialty pharmaceuticals have become an increasingly important business for providers, pharmacies, group purchasing organizations and distributors, as patients and physicians seek more personalized treatment, as well as treatment for serious chronic conditions like hepatitis C, cancer and diabetes.
McKesson expects the transactions to be about 11 cents accretive to adjusted earnings per diluted share in fiscal 2017.