McKesson raises annual profit forecast on strength in its U.S. pharma segment

McKesson

06/11/2024 22:28

Nov 6 (Reuters) - Drug distributor McKesson Corp  MCK.N 
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  COR.N  also forecast 2025 profit above Wall
Street expectations after beating fourth-quarter estimates on
strength in its U.S. business earlier on Wednesday.

 (Reporting by Sneha S K in Bengaluru; Editing by Shailesh
Kuber)
 ((Sneha.SK@thomsonreuters.com;))