McKesson plans to invest billions of dollars to take a controlling stake in a Florida cancer network with nearly 100 locations, furthering its growth in that treatment in recent years.
The Irving, Texas-based healthcare company plans to invest $2.49 billion in cash to acquire a 70% stake in Community Oncology Revitalization Enterprise Ventures, a business and administrative services organization established by the Florida Cancer Specialists & Research Institute. The physician-owned Florida Cancer Specialists will retain a minority interest in the business.
By expanding in oncology, the company will bring advanced treatments and improved care experiences to patients, said McKesson CEO Brian Tyler in a statement. In an earnings call this month, Tyler told investors the company has been pleased with the expansion of its U.S. Oncology Network over the past several years.
"It's been multiple years of steady growth," Tyler said during the earnings call with over 600 locations in 31 states with about 2,600 providers. "We continue to think that the network has tremendous attraction to community-based oncology providers.
"We look to add to that network through either acquisition of practices through managed agreements with them, where we find a practice that has relevant scale in the geography, and we think can practice clinical oncology consistent with the quality standards we have in the network," he added during the earnings call.
McKesson did not immediately respond to a media request from CoStar News seeking additional information about the company's acquisition plans.
The deal is subject to customary closing conditions, including any necessary regulatory clearances. Following the completion of the transaction, McKesson expects the business to become part of its oncology platform with financial results hitting the company's U.S. pharmaceutical segment.
Florida Cancer Specialists, with more than 250 physicians and 280 advanced practice providers across nearly 100 locations in Florida, will remain independently operated. McKesson's U.S. Oncology Network is dedicated to advancing local and affordable cancer care and better patient outcomes, the company said.
The more than 40-year-old cancer specialist practice conducts clinical trials through Sarah Cannon Research Institute with a variety of services for patients, including molecular and pathology lab services, radiation oncology, diagnostic imaging and next-generation sequencing.
Lucio Gordan, president and managing physician of Florida Cancer Specialists, said in a statement, "Above all else, our patients are the true beneficiaries of this transaction. Through the power of our combined operational expertise, we can bolster community oncology's role in increasing access to high-quality, affordable care."