U.S.-based drug distributor McKesson has raised its annual profit forecast due to the strong demand for specialty medicines. Despite lower COVID vaccine sales in the third quarter, McKesson has seen an increase in volumes for costly specialty medicines in the United States. This rise in demand has helped the company counter the impact of reduced vaccine sales. Consequently, McKesson now expects its adjusted per-share profit for 2024 to be between $27.25 and $27.65 compared to its prior range of $26.80 to $27.40.
McKesson’s U.S. pharmaceutical segment, which sells specialty drugs used to treat complex conditions such as cancer, has reported an 18% increase in third-quarter sales to $73.02 billion. Analysts estimated sales to be around $70.6 billion during this period. However, McKesson’s international segment sales fell short of expectations, recording $3.64 billion instead of the estimated $3.75 billion, due to divestitures within the company’s European business.
The company’s total revenue has risen by 14.8% to $80.9 billion, exceeding analysts’ estimates of $77.86 billion. The demand for GLP-1 medications has contributed to this positive outcome. On an adjusted basis, McKesson posted a per-share profit of $7.74 for the quarter ended December 31, surpassing analysts’ estimate of $7.05.
Despite the improved financial performance, McKesson’s share price fell 3.1% to $501 in after-market trading. The company’s strong position in the specialty medicines market and optimistic profit forecast indicate potential growth opportunities.
As McKesson responds to the demand for specialty medicines in the United States, their ability to navigate the market and leverage their extensive product range will be crucial. The company’s focus on providing drugs for complex medical conditions, as well as distributing various other pharmaceutical products, underscores its commitment to meeting diverse healthcare needs.
McKesson’s decision to revise its annual profit forecast demonstrates their confidence in the future growth of specialty medicine sales. The company’s efforts to adapt to changing market dynamics, particularly with regard to COVID-19 vaccine sales, show their resilience and ability to capitalize on emerging opportunities. As McKesson continues to strengthen its position in the pharmaceutical industry, investors and stakeholders will closely monitor their performance and future developments.