McKesson Strengthens Its Portfolio of Manufacturer Solutions with the Acquisition of RxCrossroads
November 06 2017 - 04:16PM
Business Wire
- McKesson to acquire RxCrossroads from
CVS Health in a transaction totaling $735 million, expanding our
services and solutions for our manufacturer partners.
- RxCrossroads provides commercial
support, customized pharmacy dispensing and logistics services to
pharmaceutical and biotechnology manufacturers.
- McKesson expects the impact of this
transaction to be approximately 20 cents accretive to adjusted
earnings per diluted share by the third year following the close of
the transaction.
McKesson Corporation (NYSE:MCK) today announced that it has
signed a definitive agreement to purchase RxCrossroads, a provider
of tailored services to pharmaceutical and biotechnology
manufacturers, from CVS Health Corporation (NYSE:CVS).
The transaction is valued at $735 million, or approximately $635
million net of the present value of incremental cash tax benefits,
and will be funded by cash on hand. The acquisition is expected to
close in the fourth quarter of Fiscal 2018, subject to customary
closing conditions, including necessary regulatory clearances.
This acquisition will enhance McKesson’s existing
commercialization solutions for manufacturers of branded,
specialty, generic and biosimilar drugs, including comprehensive
patient support (“hub”) services, custom pharmacy solutions and
third-party logistics, allowing McKesson to grow its end-to-end
offerings for manufacturers. In addition, the acquisition will add
plasma logistics to McKesson’s manufacturer services, complementing
the company’s established customer-facing plasma offerings.
RxCrossroads’ focus on manufacturers and the patients they
serve, including adherence support, and streamlining the process
from product launch and through a course of therapy, aligns with
McKesson’s approach to achieve better patient outcomes through
efficiency and coordination across the supply chain, and throughout
the patient journey.
“McKesson’s acquisition of RxCrossroads is another example of
our continued focus on expanding and enhancing solutions for our
biopharma manufacturer partners to deliver better patient support
and better health outcomes,” said John Hammergren, chairman and
chief executive officer, McKesson Corporation. “This investment
will strengthen our existing best-in-class solutions, including hub
services and patient assistance programs, while establishing new
logistics services to plasma manufacturers, which allows us to
serve biopharma companies of all sizes and throughout the product
life cycle.”
Following the close of the transaction, RxCrossroads will become
part of the company’s McKesson Specialty Health business. McKesson
expects the impact of this transaction to be approximately 20 cents
accretive to adjusted earnings per diluted share by the third year
following the close of the transaction.
About McKesson Corporation
McKesson Corporation, currently ranked 5th on the FORTUNE 500,
is a global leader in healthcare supply chain management solutions,
retail pharmacy, community oncology and specialty care, and
healthcare information technology. McKesson partners with
pharmaceutical manufacturers, providers, pharmacies, governments
and other organizations in healthcare to help provide the right
medicines, medical products and healthcare services to the right
patients at the right time, safely and cost-effectively. United by
our ICARE shared principles, our employees work every day to
innovate and deliver opportunities that make our customers and
partners more successful — all for the better health of patients.
McKesson has been named the “Most Admired Company” in the
healthcare wholesaler category by FORTUNE, a “Best Place to Work”
by the Human Rights Campaign Foundation, and a
top military-friendly company by Military Friendly. For
more information, visit www.mckesson.com.
About RxCrossroads®
RxCrossroads provides hub service programs encompassing
reimbursement support, integration with network pharmacies, patient
adherence programs, specialty logistics services, sales operations
support and mail-order pharmacy services to pharmaceutical,
biotechnology and medical device manufacturers. Through its
complement of capabilities, RxCrossroads' solutions incorporate
high-touch services that provide a consistent patient, prescriber
and client experience. RxCrossroads information technology
platform integrates information that provides a complete picture
for service program analysis. For more information,
visit www.rxcrossroads.com.
Adjusted Earnings
McKesson separately reports financial results on the basis of
Adjusted Earnings. Adjusted Earnings is a non-GAAP financial
measure defined as GAAP income from continuing operations,
excluding amortization of acquisition-related intangible assets,
acquisition-related expenses and adjustments, Last-In-First-Out
(“LIFO”) inventory-related adjustments, gains from antitrust legal
settlements, restructuring charges, and other adjustments.
Risk Factors
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended,
that are subject to risks and uncertainties and other factors. All
statements other than statements of historical fact are statements
that could be deemed forward-looking statements, including
statements regarding the ability to complete the transaction
considering the various closing conditions; the expected benefits
and costs of the transaction; any projections of earnings, revenues
or other financial items; any statements of the plans, strategies
and objectives of management for future operations; any statements
regarding product or service development, extensions or
integration; any statements of expectation or belief; any
statements regarding general industry conditions and competition;
any statements regarding economic conditions; and any statements of
assumptions underlying any of the foregoing. Risks, uncertainties
and assumptions include risks related to the timing or ultimate
completion of the transaction, as the transaction is subject to
certain closing conditions, including receipt of all necessary
regulatory clearances; the possibility that expected benefits may
not materialize as expected; McKesson’s ability to successfully
implement integration strategies; as well as the ability to ensure
continued performance or market growth of the products and services
of RxCrossroads. These risks, uncertainties and other factors, and
the general risks associated with McKesson’s business described in
the reports and other documents filed with the Securities and
Exchange Commission, could cause actual results to differ
materially from those referred to in the forward-looking
statements. All forward-looking statements are based on information
currently available to McKesson and are qualified in their entirety
by this cautionary statement. Except as required by law, McKesson
assumes no obligation to update any such forward-looking statements
or other statements included in this press release.
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version on businesswire.com: http://www.businesswire.com/news/home/20171106006404/en/
McKesson CorporationCraig Mercer, 415-983-8391 (Investors and
Financial Media)Craig.Mercer@McKesson.comKristin Hunter Chasen,
415-983-8974 (General and Business
Media)Kristin.Chasen@McKesson.com
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