10:45 AM EDT, 08/26/2024 (MT Newswires) -- McKesson (MCK) on Monday agreed to purchase a controlling stake in the business and administrative services division of Florida Cancer Specialists & Research Institute, a privately-held operator of cancer clinics, to boost its oncology portfolio.

The drug distributor will pay about $2.49 billion in cash for a roughly 70% stake in the Community Oncology Revitalization Enterprise Ventures unit, also known as Core Ventures. Florida Cancer Specialists' physicians will continue to retain a minority stake in the business organization.

"This milestone marks an important step forward in our efforts to advance community-based oncology care," McKesson Chief Executive Brian Tyler said in a joint statement. The completion of the deal is subject to approval from regulators, according to the company.

Florida Cancer Specialists, a medical practice that operates across almost 100 locations in Florida with more than 250 physicians, will remain independently owned and join McKesson's US oncology network, as part of the transaction. The operator of cancer clinics will gain access to McKesson's oncology care products and services.

"The US oncology network and (Florida Cancer Specialists) share a mission and we both aim to strengthen patient-centered cancer care in the community to improve outcomes," Florida Cancer Specialists CEO Nathan Walcker said. "We are thrilled to partner with McKesson and join the network."

Following completion of the deal, the business unit will become part of McKesson's oncology platform and its financial results will be reported within the company's US pharmaceutical segment.

Earlier in the month, McKesson reported a 6% annual increase in its fiscal first-quarter revenue to $79.28 billion, primarily driven by the US pharmaceutical business. The company at the time raised its full-year adjusted earnings outlook to a range of $31.75 to $32.55 per share from its previous projections of $31.25 to $32.05. The current consensus on Capital IQ is for normalized EPS of $32.13.

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