McKesson plans to grow its oncology platform by investing nearly $2.5 billion into a community oncology clinic operator’s business and administrative services arm.
Announced Monday, the deal sees Irving, Texas-based McKesson picking up a 70% stake in Community Oncology Revitalization Enterprise Ventures (Core Ventures), which was launched earlier this year by Florida Cancer Specialists & Research Institute (FCS).
The Fort Myers, Florida-based institute is a group practice of more than 250 physicians, 280 advanced practice providers and almost 100 Florida locations that will remain independent following the deal’s close. Its physician owners will retain their minority interest in Core Ventures.
Pending closing conditions and regulatory clearances, Core Ventures would become part of McKesson’s oncology platform.
“By growing our Oncology platform, we will bring advanced treatments and improved care experiences to patients, while also reducing the overall cost of care,” McKesson CEO Brian Tyler said in the announcement. “FCS and Core Ventures’ expertise and patient-first approach align with our commitment to accelerating clinical development, improving patient outcomes and expanding access to quality cancer care in the community.”
FCS and its providers—which offer services from chemotherapy infusion to diagnostic imaging to clinical trials—will also join up with McKesson’s US Oncology Network. Per its website, the network already spans more than 60 care sites and 2,500 affiliated providers that receive access to the company’s oncology products and services.
“The US Oncology Network and FCS share a mission and we both aim to strengthen patient-centered cancer care in the community to improve outcomes,” Nathan Walcker, CEO of FCS, said in the announcement. “We are thrilled to partner with McKesson and join The Network, which furthers the joint commitment to bringing the best medicine and innovation for patients into communities across Florida.”
Community-based oncology practices have become a target for healthcare pharmaceutical and supply distributors like McKesson. Last month, Bloomberg reported that two of McKesson’s competitors in the space, Cencora and Cardinal Health, were also courting FCS.
The new partners institute’s physician owners will retain a minority investment following the deal's close.