McKesson Launches Comprehensive Review of Operations

   By Maria Armental 
 

McKesson Corp. (MCK), which has faced scrutiny over its handling of opioid drugs, is planning a "comprehensive review" of its operations as part of a multiyear strategic plan to drive growth.

As part of its revamped focus, the San Francisco-based drug distributor has agreed to buy Medical Specialties Distributors, a national distributor of infusion and medical-surgical supplies, in a roughly $800 million deal that is expected to close in the first half of fiscal 2019.

For the next fiscal year, which begins April 1, 2019, McKesson projects adjusted profit at a $13 a share to 13.80 a share. Analysts polled by Thomson Reuters expect adjusted earnings of $13.36 a share.

On Wednesday, McKesson said the latest cost-cutting plan, which includes an unspecified number of job cuts, would result in roughly $150 million to $210 million in after-tax charges in the current fiscal year.

McKesson maintained its fiscal 2018 guidance of $12.50 a share to $12.80 a share, which includes about $100 million to create a non-profit foundation to help fight the opioid epidemic in the U.S. It expects to record between $600 million and $1.9 billion in restructuring charges in the fourth quarter.

The company is expected to disclose more information during a conference call Thursday morning.

Shares, which rose 2% in Wednesday trading to $151.71, rose 1.5% after hours.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

April 25, 2018 19:27 ET (23:27 GMT)

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