Summary
McKesson Corporation (MCK) filed an 8-K on October 4, 2007, announcing several significant strategic moves. The company has entered into a definitive agreement to acquire Oncology Therapeutics Network (OTN), a U.S. distributor of specialty pharmaceuticals. This acquisition is expected to enhance McKesson's position in the specialty pharmaceutical distribution market and is subject to customary closing conditions and regulatory review. In addition to the strategic acquisition, McKesson's Board of Directors approved a new $1 billion share repurchase authorization, supplementing the remaining $316 million under the prior authorization. This indicates a commitment to returning value to shareholders. Furthermore, the company reaffirmed its full-year fiscal 2008 earnings per diluted share guidance of $3.15 to $3.30, excluding certain charges, and confirmed that this outlook incorporates the anticipated impact of the OTN acquisition.
Key Highlights
- 1McKesson has signed a definitive agreement to acquire Oncology Therapeutics Network (OTN), a U.S. distributor of specialty pharmaceuticals.
- 2The acquisition of OTN is subject to customary closing conditions and regulatory review.
- 3McKesson's Board of Directors approved a new $1 billion share repurchase authorization.
- 4This new authorization is in addition to the $316 million remaining under the previous $1 billion share repurchase plan.
- 5The company reaffirmed its fiscal year 2008 diluted earnings per share outlook of $3.15 to $3.30 (excluding restructuring charges and securities litigation reserve adjustments).
- 6The reaffirmed earnings outlook includes the expected financial impact of the OTN acquisition.