We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
McKesson, Walgreens Form JV for European Pharmaceutical Unit
Read MoreHide Full Article
McKesson Corporation (MCK - Free Report) recently entered an agreement with Walgreens Boots Alliance (WBA - Free Report) to create a joint venture (JV) that will combine the companies’ pharmaceutical wholesale businesses in Germany.
Following the announcement, shares of McKesson inched up 0.3% to $143.93 at close.
Notably, the company has also been selected by the Department of Veterans Affairs to continue as the prime pharmaceutical supplier to more than 750 locations.
How Does McKesson Stand to Gain?
Per the terms of the JV, Walgreens will have a 70% controlling equity interest, while McKesson will have the rest. Financial terms of the transaction have been kept under wraps.
The latest move is also expected to boost McKesson’s European Pharmaceutical Solutions segment. For investors’ notice, the segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products in Europe, operating in 13 countries.
It is encouraging to note that, in the last reported quarter, the unit grew 4% at constant currency on market growth in the pharmaceutical distribution business.
Management at McKesson expects revenues to rise in Europe in the second half of fiscal 2020.
Market Prospects
MarketWatch predicts that the global drug distribution market will reach a worth of $12.70 billion by 2024, given the rise in chronic diseases worldwide.
Hence, the latest development has been a well-timed one for McKesson.
Price Performance
In a year’s time, this Zacks Rank #3 (Hold) company has rallied 24.8% compared with the industry’s 1.4% rise.
Conmed has a long-term earnings growth rate of 17%.
HealthEquity has a long-term earnings growth rate of 25%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
McKesson, Walgreens Form JV for European Pharmaceutical Unit
McKesson Corporation (MCK - Free Report) recently entered an agreement with Walgreens Boots Alliance (WBA - Free Report) to create a joint venture (JV) that will combine the companies’ pharmaceutical wholesale businesses in Germany.
Following the announcement, shares of McKesson inched up 0.3% to $143.93 at close.
Notably, the company has also been selected by the Department of Veterans Affairs to continue as the prime pharmaceutical supplier to more than 750 locations.
How Does McKesson Stand to Gain?
Per the terms of the JV, Walgreens will have a 70% controlling equity interest, while McKesson will have the rest. Financial terms of the transaction have been kept under wraps.
The latest move is also expected to boost McKesson’s European Pharmaceutical Solutions segment. For investors’ notice, the segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products in Europe, operating in 13 countries.
It is encouraging to note that, in the last reported quarter, the unit grew 4% at constant currency on market growth in the pharmaceutical distribution business.
Management at McKesson expects revenues to rise in Europe in the second half of fiscal 2020.
Market Prospects
MarketWatch predicts that the global drug distribution market will reach a worth of $12.70 billion by 2024, given the rise in chronic diseases worldwide.
Hence, the latest development has been a well-timed one for McKesson.
Price Performance
In a year’s time, this Zacks Rank #3 (Hold) company has rallied 24.8% compared with the industry’s 1.4% rise.
Key Picks
Some better-ranked stocks from the broader medical space are CONMED Corporation (CNMD - Free Report) and HealthEquity (HQY - Free Report) . While CONMED carries a Zacks Rank #2 (Buy), HealthEquity sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Conmed has a long-term earnings growth rate of 17%.
HealthEquity has a long-term earnings growth rate of 25%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>