McKesson To Spin-Off Its Medical-Surgical Solutions Business

Core Viewpoint - McKesson Corporation plans to spin off its Medical-Surgical Solutions segment into an independent company, referred to as NewCo, to enhance shareholder value and focus on strategic growth priorities in its remaining segments [1][2][4]. Deal Overview - The spin-off is part of McKesson's disciplined portfolio management strategy, which has previously included significant divestitures that unlocked shareholder value [2]. - The Medical-Surgical Solutions segment accounts for only 3.2% of McKesson's total revenue, with FY25 revenue around $11.4 billion, and has experienced sluggish growth since 2020 [4][17]. Financial Performance - For FY25, McKesson reported consolidated revenues of $359.1 billion, a 16.2% increase year-over-year from $309.0 billion in FY24 [12]. - In 4Q25, revenues reached $90.8 billion, up 18.9% year-over-year, driven by growth in the U.S. Pharmaceutical segment [10]. - Net income for FY25 was $3.3 billion, a 9.8% increase year-over-year, while adjusted net income was $4.2 billion, up 15.1% [12]. Strategic Focus Post-Spin-Off - After the spin-off, McKesson will concentrate on higher growth and higher margin opportunities in Oncology and Biopharma Solutions [3]. - The company has made recent acquisitions, including Rx Savings Solutions and plans to acquire a controlling stake in Core Ventures, to strengthen its core operations [3]. Long-Term Growth Targets - McKesson reaffirms its long-term adjusted earnings per diluted share growth target of 12% to 14% and updates the U.S. Pharmaceutical segment's long-term adjusted segment operating profit growth target to 6% to 8% [13][14].