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McKesson raises annual profit forecast on strength in its U.S. pharma segment
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McKesson raises annual profit forecast on strength in its U.S. pharma segment
Nov 9, 2024 11:44 AM

Nov 6 (Reuters) - Drug distributor McKesson Corp ( MCK )

raised its annual profit forecast on Wednesday, driven by

increased sales in its U.S. pharmaceuticals segment on robust

demand for specialty and branded drugs.

Shares of the company were up 4.5% in extended trading.

The Texas-headquartered company now expects 2025 profit in

the range of $32.40 to $33 per share, compared with its previous

estimate of $31.75 and $32.55 per share.

The company reported second-quarter revenue of $93.65

billion, primarily driven by growth in its U.S. pharmaceutical

segment, beating analysts' estimates of $89.33 billion as per

data compiled by LSEG.

The U.S. pharma segment sells drugs used to treat complex

conditions such as cancer and is McKesson's largest unit by

revenue.

Sales from the segment rose 23% to $85.7 billion, driven by

increased prescription volumes, specialty products, and GLP-1

medications, the company said. Analysts on average were

expecting sales of $82.21 billion.

The company had said in August that it anticipates continued

GLP-1 medication growth year over year, however, with

variability from quarter to quarter.

Drug distributors in the United States are expanding their

presence in the specialty medicines market that treats complex

conditions like rheumatoid arthritis and cancer due to their

high profit margins.

On an adjusted basis, McKesson reported a profit of $7.07

per share, ahead of estimates of $6.88 per share.

Peer Cencora also forecast 2025 profit above Wall

Street expectations after beating fourth-quarter estimates on

strength in its U.S. business earlier on Wednesday.

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