McKesson (MCK) Announces Availability of FDA-Approved Drug
McKesson Corporation’s MCK Biologics by McKesson, its independent specialty pharmacy specializing in oncology and rare disease areas, has been selected by SpringWorks Therapeutics as a limited distribution specialty pharmacy for OGSIVEO (nirogacestat). OGSIVEO is a gamma-secretase inhibitor indicated for adult patients with progressing desmoid tumors who require systemic treatment.
OGSIVEO was approved by the FDA on Nov 27, 2023.
The availability of the FDA-approved drug is expected to significantly solidify McKesson’s foothold in the global desmoid tumors treatment space and boost its Specialty Pharmacy Solutions business.
Significance of the Availability
Per McKesson, desmoid tumors (also referred to as aggressive fibromatosis) are locally invasive and slow-growing soft tissue tumors. Although these tumors are considered benign due to their inability to metastasize, they can cause significant morbidity and, occasionally, mortality in patients. OGSIVEO is the first drug to be approved for this rare type of non-cancerous tumor.
McKesson’s management believes that OGSIVEO will likely provide a new therapy option for patients affected by desmoid tumors, which is a unique, rare, and sometimes unpredictable disease.
Industry Prospects
Per a report by Coherent Market Insights, the global desmoid tumors market was estimated to be valued at $2,494.1 million in 2022 and is anticipated to exhibit a CAGR of 7.3% between 2022 and 2023. Factors like the increasing incidences of the disease and the related demand for effective and sophisticated chemotherapeutic drugs are expected to drive the market.
Given the market potential, the recent drug availability is expected to strengthen McKesson’s position in the global desmoid tumors care space.
Recent Developments in Specialty Pharmacy Solutions
This month, McKesson announced that Biologics by McKesson was selected by AstraZeneca as a specialty pharmacy provider for TRUQAP (capivasertib).
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.
Price Performance
Shares of the company have gained 21.2% in the past year compared with the industry’s 7.8% rise and the S&P 500's 16% growth.
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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, DexCom, Inc. DXCM 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 43.7% compared with the industry’s 5.7% rise in the past year.
DexCom, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, with an average of 36.4%.
DexCom’s shares have gained 0.2% against the industry’s 6.2% decline 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 28.4% against the industry’s 6.2% decline in the past year.
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