McKesson makes major $2.25B oncology drug development acquisition
Healthcare giant McKesson is acquiring Precision Medicine Group to expand its portfolio of cancer treatment options, the company announced Tuesday. The transaction is valued at around $2.25 billion.
Once the transaction closes, the privately managed Precision Medicine Group will fall under McKesson’s Oncology & Multispecialty banner. Before that happens, the sale will be subject to approval by regulators, as is customary.
In its statement, McKesson lauded Precision Medicine Group’s “next-generation approaches to drug development and commercialization,” adding that the company is important to drug developers, as it provides “biomarker intelligence,” labs and access to global clinical research organizations that aid pharmaceutical companies in bringing new cancer drugs to market.
“This acquisition represents another meaningful step in advancing our oncology and multispecialty strategy and reflects our continued commitment to providing patients with access to the highest quality of care,” Brian Tyler, chair and chief executive officer of McKesson, said in a statement. “Precision Medicine Group brings complementary capabilities that will enhance our clinical research and commercialization services, strengthen clinical trial execution, and broaden our clinical service offerings.”
The deal comes as part of a larger restructuring at McKesson, where the Texas-based group has opted to focus on biopharma development and oncology as part of a new plan to stay profitable.
Its Oncology & Multispecialty business segment was created as part of that restructuring.
McKesson’s stock jumped 3.6% on the news, trading at $905.09 a share.
Suite of drug development resources
Precision Medicine Group, based in Maryland, was founded in 2012. The company’s primary focus is bringing new oncology drugs to market, supporting research and development with data and other resources as necessary.
Its technology and approach are prolific. In 2024 alone, 56% of new drugs approved by the FDA were touched by Precision Medicine Group.
The McKesson acquisition could close later this year.
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