McKesson extends reach into oncology space with two acquisitions
SAN FRANCISCO - McKesson announced Thursday that it has signed definitive agreements to purchase Vantage Oncology, a leading national provider of radiation oncology, medical oncology and integrated cancer care, and Biologics, an oncology pharmacy services company, in a pair of transactions valued at $1.2 billion.
Collectively, these acquisitions will increase McKesson’s specialty pharmaceutical distribution scale, oncology-focused pharmacy offerings, solutions for manufacturers and payers and scope of community-based oncology and practice management services available to providers and patients.
“McKesson is committed to the success of our community oncology partners and customers and we believe the acquisitions of Vantage and Biologics complement our holistic approach to providing best–in-class care for oncology patients,” stated John Hammergren, chairman and CEO McKesson. “These investments will broaden McKesson’s practice management services and solutions that allow oncologists to focus on providing excellent patient care and provide additional support solutions that enhance care delivery for patients. We will also be able to offer additional value-added services to our manufacturer partners, expand our reach and pharmaceutical distribution scale, and provide care management and care coordination for payers as the industry moves towards value-based reimbursement models.”
Vantage will broaden the company’s scale in radiation oncology management services, adding more than 50 cancer centers across 13 states. Vantage operates a practice management model through joint ventures and shares profits with their partner physicians and hospitals. Vantage’s model of comprehensive oncology management services, including its focus on radiation oncology and urology, will complement and strengthen the existing offerings of McKesson and The US Oncology Network, keeping the business health of community-based oncology practices strong, while allowing patients to access the care they need in the most efficient and cost effective way.
Biologics will extend McKesson’s oncology expertise across the continuum of care for patients, allowing the company to engage its manufacturer partners in new ways and to enhance its value proposition to providers, patients and payers. The high-touch specialty pharmacy model provides controlled dispensing channels, including rapid and traceable pharmaceutical delivery solutions, increased analytics, and services for oncology patients, providing seamless care management.