McKesson to Buy Controlling Interest in Florida Cancer Specialists’ Core Ventures

Drug distributor McKesson signed a definitive agreement to purchase a controlling stake in Community Oncology Revitalization Enterprise Ventures, LLC (Core Ventures), a business and administrative services organization formed by Florida Cancer Specialists & Research Institute (FCS).¹

The $2.49 billion cash purchase will give McKesson about 70% ownership of Core Ventures, while physicians at the community oncology practice will retain their minority stake, according to a news release. Core Ventures oversees nonclinical administrative tasks, offering operational and advisory support services to FCS clinics throughout Florida. It was developed earlier in 2024 to partner with distributors in response to increasing drug shortages and prices.²

The $2.49 billion cash purchase will give McKesson about 70% ownership of Core Ventures | Image credit: Askar – stock.adobe.com

The transaction is pending regulatory approvals and other customary closing conditions, but once completed, Core Ventures will become part of McKesson’s Oncology platform, with financial results reported under the US Pharmaceutical segment.¹ Additionally, FCS—which includes more than 250 physicians and 280 advanced practice providers across nearly 100 Florida locations—will remain independently owned and join McKesson's The US Oncology Network.

Brian Tyler, CEO of McKesson, called this agreement a “milestone” and “step forward” in McKesson’s work toward advancing community-based oncology care, which focuses on improving treatments and the overall patient experience while reducing costs.

“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,” Tyler said. “We are also pleased to welcome Florida Cancer Specialists & Research Institute to The US Oncology Network, reinforcing our dedication to empowering community-based providers to independently thrive in today’s rapidly evolving healthcare landscape.”

Lucio N. Gordan, MD, president and managing physician at FCS, highlighted the importance of this deal for patients.

“Above all else, our patients are the true beneficiaries of this transaction, as we seek to drive meaningful outcomes and deliver sustained value with every interaction,” Gordan said. “Through the power of our combined operational expertise, we can bolster community oncology's role in increasing access to high-quality, affordable care.”

References

1. McKesson signs agreement to acquire controlling interest in Florida Cancer Specialists & Research Institute’s core ventures. News release. McKesson. August 26, 2024. Accessed August 26, 2024. https://www.mckesson.com/about-mckesson/newsroom/press-releases/2024/mckesson-signs-agreement-to-acquire-controlling-interest-in-florida-cancer-specialists--research-institutes-core-ventures/
2. McKesson to buy controlling stake in Florida Cancer Specialists' unit for about $2.5 billion. Reuters. August 26, 2024. Accessed August 27, 2024. https://www.reuters.com/business/healthcare-pharmaceuticals/drug-distributor-mckesson-buy-controlling-stake-core-ventures-about-25-bln-2024-08-26/