McKesson Corp. shares climbed 3.2% to $901.49 in afternoon trading on Monday, driven by a definitive agreement to acquire Precision Medicine Group, LLC for approximately $2.25 billion.
The deal, centered on oncology and multispecialty services, follows McKesson’s recent 15% increase in its quarterly dividend to $0.94 per share. Barclays raised its price target for the stock to $1,000 days before the announcement, citing the company’s strategic expansion in higher-margin segments.
Precision Medicine Group provides clinical research and biopharmaceutical commercialization services, including biomarker intelligence, laboratory operations, and market access consulting. The acquisition reinforces McKesson’s focus on oncology, where its revenue in the most recent quarter grew 33%.
The stock reached a session high of $902.13, recovering further from a 52-week low of $673.38 and approaching its 52-week peak of $999. The S&P 500, Dow Jones Industrial Average, and Nasdaq all posted modest gains of 0.2%, 0.2%, and 0.4% respectively during the session.
McKesson, headquartered in Irving, Texas, has emphasized its shift toward higher-growth, higher-margin areas under CEO Brian Tyler’s leadership. The acquisition and strong segment performance were cited as primary drivers of the stock’s advance, outweighing broader market trends.
