McKesson Corporation (MCK - Analyst Report) announced that it has appointed James A. Beer as the company’s executive vice president and chief financial officer (CFO).
The appointment is effective Oct 9, 2013. Beer succeeds Jeffrey C. Campbell who quit from his positions at the end of Jun 2013 to join American Express Company (AXP - Analyst Report).
Earlier, Beer was the executive vice president and CFO at Symantec Corporation (SYMC - Analyst Report), handling positions in a variety of fields including accounting, financial planning and analysis, treasury, tax, investor relations, corporate development, purchasing, and audit.
We remind investors that Campbell was the CFO of McKesson for the last 10 years and played a key role in the company’s phenomenal growth trajectory wherein revenues jumped significantly from $68 billion in fiscal 2004 to $122 billion in fiscal 2013.
McKesson is a major player in the pharmaceutical and medical supplies distribution market. The company’s Distribution Solutions segment continues to perform well benefiting from increased generic utilization, driven by a lot of products going off-patent in the next few years and an aging population.
Concurrent with its first quarter of fiscal 2014 results, McKesson upped its results and expects adjusted earnings in the range of $8.05 – $8.35 per share, up from the earlier estimate of $7.90 – $8.20 per share
However, generic launches are expected to be slower in 2013 compared to 2012. This, in turn, might adversely impact the distribution business.
Hence, it remains to be seen how Beer propels McKesson’s growth trajectory further.
McKesson currently carries a Zacks Rank #2 (Buy). Right now, Cardinal Health, Inc. (CAH - Analyst Report) also looks attractive with a Zacks Rank #1 (Strong Buy).