Pharmaceutical distribution major McKesson Corp. has declared its profits. The company has declared that the profits has nearly doubled in the fiscal third quarter as sales improved. The company has also declared that is spent less reserves on lawsuits in the quarter which again boosted the earnings of the company. McKesson said its profit grew to $300 million, or $1.22 per share, in the quarter ended Dec. 31. A year earlier it reported a profit of $155 million, or 61 cents per share. Analysts expected the company to have performed on similar levels and hence there was not much knee jerk reaction on the prices.
Commenting on the results CEO John Hammergren of McKesson said that Generics play an ever more significant role in U.S. Pharmaceutical. In the third quarter, one of the important launches was for the generic version of LIPITOR. Thus far, the launch has been tracking nicely, and we expect it to meet our original full year expectations. We’ve also been pleased with the relative price stability within the broader generics market, which is in line with our original forecast.
He mentioned that the focus is now shifted from the integration of the 2 companies to operating the business combined in delivering an expanded value proposition to our market. We have a broad diverse specialty business with solutions not only for oncology but for a number of complex disease states.
The company also approved a stock repurchase which again pleased investors. McKesson also approved the repurchase of $650 million in company stock. It has authorized the repurchase of $1.5 billion in stock. The company also backed its fiscal-year profit outlook, calling for adjusted income of $6.19 to $6.39 per share. We maintain a buy call on the scrip for the next two quarters and the health bill could also help the company’ sales in the future.