McKesson (MCK) Set to Sell Canadian Rexall Pharmacy Group

Company Overview - McKesson Corporation (MCK) plans to sell Rexall Pharmacy Group, a Canadian drugstore chain acquired for approximately $2.2 billion seven years ago [1] - The acquisition of Rexall in 2016 was aimed at strengthening McKesson's position in Canada's pharmaceutical supply chain [1] Price Performance - Over the past six months, McKesson's shares have increased by 19.9%, contrasting with a 2.4% decline in the industry and a 3.9% rise in the S&P 500 [2] Sale Process - McKesson has been in discussions with potential buyers for Rexall throughout the summer, currently in the second round of offers without a set deadline for submissions [4] - Rexall operates 400 pharmacies in Canada and employs around 8,000 people; however, the pharmaceutical distribution division may not be included in the sale [4] Industry Context - Pharmaceutical dealmaking in Canada rose to $6.8 billion in 2023 from $1.8 billion in 2022, although it decreased from $7.5 billion in 2021 [4] - In 2021, McKesson divested its European businesses to Phoenix Group, a German drug distributor [4] Notable Developments - In December 2023, McKesson announced the availability of an FDA-approved drug for PNH treatment, which is expected to enhance its position in the global PNH treatment market and boost its Specialty Pharmacy Solutions business [5] Zacks Rank & Other Stocks - McKesson currently holds a Zacks Rank of 2 (Buy) [6] - Other top-ranked stocks in the medical sector include Integer Holdings Corporation, Acadia Healthcare, and Universal Health Services, all carrying a Zacks Rank of 2 [6]