McKesson’s pharmaceutical direct distribution contributed to uptick in revenue. Source: McKesson

McKesson reported a 9 percent growth in revenue for its first quarter of fiscal 2008 (end-June 30), but noted that net income remained flat for the period due to higher expenses.

The company said its revenues for the first quarter of 2008 were $26.7 billion, compared to $24.5 billion a year ago.

In the first quarter, McKesson said its revenue was up 9 percent, “driven primarily by solid growth in pharmaceutical direct distribution and services revenues in both the United States and Canada, and the acquisition of Oncology Therapeutics Network.”

During the first quarter, McKesson deployed $242 million for acquisitions and repurchased $130 million of common stock, leaving $1.2 billion remaining on its current share repurchase authorization.

McKesson said improving momentum and a projected release of tax reserves puts it in line for better-than-expected earnings for the year.