McKesson raises annual profit forecast on strong growth in specialty drug business

Aug 5 (Reuters) – Drug distributor McKesson on Wednesday raised its annual profit forecast after beating first-quarter earnings estimates, on strength in its oncology and specialty drug businesses.

The company now expects fiscal 2027 adjusted profit to be in the range of $44.20 to $45 per share, from its previous projection of $43.80 to $44.60 per share. Analysts were expecting a profit of $44.26 per share, according to data compiled by LSEG.

Here are more details:

• The Texas-based company reported revenue of $105.4 billion for the first quarter ended June 30, beating analysts’ expectations of $103.74 billion, helped by increased prescription volumes for its oncology and specialty medicines.

• McKesson and peers, including Cardinal Health and Cencora, are capitalizing on surging demand for high-cost specialty drugs used to treat rheumatoid arthritis and cancer, helping generate strong margins.

• On an adjusted basis, McKesson earned a profit of $9.93 per share, up 20% from a year ago and beating analysts’ estimate of $9.54 per share.

• Sales in McKesson’s U.S. pharmaceutical unit, its largest segment by revenue, rose 5% to $86.8 billion, driven in part by higher prescriptions for specialty products.

• In April, McKesson said it will sell a minority stake in its medical-surgical solutions business to investment firm Apollo Funds for $1.25 billion, as the drug distributor streamlines its operations to focus on its core pharmaceutical distribution business.

• Earlier on Wednesday, peer Cencora also raised its annual adjusted profit forecast, banking on continued strength in demand for specialty medicines.

(Reporting by Sneha S K in Bengaluru; Editing by Diti Pujara)