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MCK Stock Gains as PRISM Acquisition Adds High-Growth Business

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McKesson Corporation (MCK - Free Report) recently announced the completion of its previously announced acquisition of PRISM Vision Holdings, LLC, a leading provider of general ophthalmology and retinal management services, thereby expanding its presence in the ophthalmology and retinal management sector. The acquisition, valued at approximately $850 million for an 80% controlling stake, aligns with McKesson’s strategy to enhance its specialty healthcare services and broaden its portfolio beyond oncology. PRISM physicians will retain an approximate 20% interest.

Likely Share Price Movement of MCK

MCK’s shares gained 2.9% on April 3, following the completion of the acquisition, likely in anticipation of rising business growth potential for the company. The stock has risen 21.7% so far this year compared with the industry’s growth of 1.2%. The S&P 500 Index declined 4.7% in the same time frame.

PRISM’s network of more than 180 providers, 91 office locations, and seven ambulatory surgery centers offers McKesson a robust infrastructure to build a leading retinal and ophthalmology platform. As McKesson integrates PRISM Vision into its U.S. Pharmaceutical segment, the acquisition positions the company for long-term growth and innovation in the high-demand retinal and ophthalmology market. The synergy between McKesson’s operational expertise and PRISM’s specialized provider network creates an opportunity for both organizations to drive innovation and efficiency in high-growth areas of retina and ophthalmology.

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Expansion of Clinical and Distribution Capabilities

One of the primary benefits of this acquisition is the enhancement of McKesson’s clinical services and distribution offerings. With PRISM’s established network, McKesson can integrate advanced retinal and ophthalmology management solutions into its existing specialty practice services. The acquisition allows McKesson to leverage its expertise in managing oncology practices to create a similarly differentiated platform for ophthalmology, reinforcing its leadership in community-based healthcare solutions.

Strengthening Data, Analytics and Research

The deal also supports McKesson’s long-term goal of expanding its data and analytics capabilities. By integrating PRISM’s operations, McKesson can harness data-driven insights to optimize patient outcomes, improve clinical research methodologies and strengthen its value proposition for biopharma partners. Additionally, the acquisition facilitates increased investment in innovative clinical research, further solidifying McKesson’s role as a key player in advancing specialty care.

Deepening Biopharma Partnerships

McKesson has a history of fostering strong biopharma collaborations, and this acquisition enables it to deepen these relationships in the ophthalmology space. With PRISM’s established reputation in the field, McKesson can provide biopharma partners with enhanced research, distribution and specialty care capabilities. This expansion strengthens McKesson’s ability to deliver integrated solutions to pharmaceutical companies focused on retinal and ophthalmologic conditions.

Financial Impact and Growth Projections

Financially, the acquisition is expected to be accretive to McKesson’s earnings. In the first 12 months post acquisition, PRISM Vision is projected to contribute 20-30 cents to McKesson’s adjusted earnings per share. By the end of the third year, this contribution is expected to grow to 65-75 cents per share. These figures indicate a strong return on investment and a promising growth trajectory for McKesson’s specialty healthcare segment.

Zacks Rank & Stocks to Consider

McKesson currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Masimo (MASI - Free Report) , Cencora, Inc. (COR - Free Report) and Boston Scientific Corporation (BSX - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masimo, sporting a Zacks Rank #1 at present, has an estimated growth rate of 20% for 2025. MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.41%.

Masimo’s shares have gained 1.4% against the industry’s 4.5% decline so far this year.

Cencora, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.1%. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.9%.

Cencora’s shares have gained 23.5% compared with the industry’s 4.2% growth year to date.

Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.

Boston Scientific’s shares have rallied 13.4% compared with the industry’s 7.6% growth so far this year.

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