McKesson announces two acquisitions

McKesson announced it has signed definitive agreements to purchase both Vantage Oncology and Biologics for a combined total of $1.2 billion.

Vantage provides radiation oncology, medical oncology, and other integrated cancer care, while Biologics is an independent oncology-focused pharmacy. The deals are expected to close in the first quarter of the 2017 fiscal year, and both companies will become a part of McKesson’s Specialty Health business.

“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,” John Hammergren, McKesson chairman and CEO, said in a prepared statement. “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.”

Paul Julian, McKesson executive vice president and group president of distribution solutions, highlighted the impact of both transactions in the McKesson statement.

“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,” Julian said. “And Biologics positions us well as manufacturers bring new innovative oncology products to the market and need the value-added services that McKesson provides.”