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McKesson (MCK) Announces Availability of FDA-Cleared Drug

McKesson Corporation MCK recently announced that its independent specialty pharmacy specializing in oncology and rare disease areas, Biologics by McKesson, was selected by AstraZeneca as a specialty pharmacy provider for TRUQAP (capivasertib). TRUQAP is an orally administered drug, in combination with fulvestrant, for the treatment of adult patients with hormone receptor-positive, human epidermal growth factor receptor 2-negative locally advanced or metastatic breast cancer with one or more biomarker alterations (PIK3CA, AKT1, or PTEN).

Patients whose cancer has progressed following at least one endocrine-based regimen in the metastatic setting or experienced recurrence on or within 12 months of completing adjuvant therapy are eligible for treatment with TRUQAP.

TRUQAP was approved by the FDA on Nov 17, 2023.

The availability of the FDA-approved drug is expected to significantly solidify McKesson’s foothold in the global cancer treatment space and boost its Specialty Pharmacy Solutions business.

Significance of the Availability

Per McKesson’s management, TRUQAP will likely be a novel treatment for breast cancer patients and is expected to make a difference in the long-term outcomes of their lives.

Industry Prospects

Per a report by Straits Research, the global oncology cancer drugs market was valued at $148,050.6 million in 2021 and is anticipated to reach $288,636.6 million by 2030 at a CAGR of 7.7%. Factors like the rise in the incidence of various cancer conditions and the growing popularity of advanced therapies (such as biological and targeted drug therapies) are expected to drive the market.

Given the market potential, the recent drug availability is expected to strengthen McKesson’s position in the global oncology care space.

Notable Developments

Last month, McKesson announced that Biologics by McKesson was selected by Takeda as a specialty pharmacy provider for FRUZAQLA (fruquintinib).

The same month, McKesson reported its second-quarter fiscal 2024 results, wherein it recorded a solid uptick in its overall top line. The revenue uptick was primarily driven by growth in the U.S. Pharmaceutical segment, resulting from increased prescription volumes, including higher volumes from retail national account customers, specialty products, and GLP-1 medications.

In September, McKesson announced that Biologics by McKesson was selected by GSK as a specialty pharmacy provider for OJJAARA (momelotinib).

Price Performance

Shares of the company have gained 21.5% in the past year compared with the industry’s 9.9% rise and the S&P 500's 15.1% growth.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Key Picks

Currently, McKesson carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Cardinal Health, Inc. CAH and Integer Holdings Corporation ITGR.

DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, with an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita’s shares have gained 42% compared with the industry’s 3.3% rise in the past year.

Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 15.2%. CAH’s earnings surpassed estimates in all the trailing four quarters, with an average of 15.7%.

Cardinal Health’s shares have gained 34.8% compared with the industry’s 9.9% rise in the past year.

Integer Holdings, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.

Integer Holdings’ shares have rallied 22.7% against the industry’s 4.7% decline in the past year.

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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report

McKesson Corporation (MCK) : Free Stock Analysis Report

Integer Holdings Corporation (ITGR) : Free Stock Analysis Report

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