McKesson, has signed a definitive agreement to purchase Oncology Therapeutics Network (OTN), a U.S. distributor of specialty pharmaceuticals, for approximately $575 million, including the assumption of debt. McKesson plans to combine the operations of OTN with the operations of McKesson Specialty.
The acquisition is subject to customary closing conditions, including any necessary regulatory review.
The McKesson board of directors also approved a new, additional $1 billion share repurchase authorization. In the quarter ended Sept. 30, the company repurchased $425 million in stock, leaving $316 million remaining on the previous $1 billion share repurchase authorization announced in May.
McKesson said that the acquisition of OTN, combined with the additional $1 billion share repurchase authorization, demonstrates their continuing commitment to capital deployment to create stockholder value.