McKesson Corporation announced yesterday that it will acquire Vantage Oncology and Biologics for a total of $1.2 billion — adding the two companies to its Specialty Health business.

The two acquisitions will broaden McKesson's oncology pharmacy offerings, solutions for manufacturers and payors and community-based oncology practice management services for providers and patients.

Vantage Oncology owns and operates more than 50 cancer treatment facilities in 13 states in the U.S. Its network of affiliated physicians and medical groups includes medical oncologists, radiation oncologists, surgeons and hospitals.
"This combination brings together two highly complementary organizations with closely aligned goals and values," Michael Fiore, CEO and co-founder of Vantage, said in a statement. "By joining together, we will be able to offer an exceptionally broad set of services to patients and physicians, and strengthen our leadership in community-based oncology and value-based cancer care."

Biologics is an oncology pharmacy services company. Its goal is to help payors, biopharmaceutical companies, researchers, and health care provides improve outcomes, reduce risk, and speed access to care.

The company will help McKesson engage with its manufacturer partners in new ways that will improve its value proposition to providers, patients and payors. Biologic's specialty pharmacy model enables controlled dispensing channels, increased analytics and services for oncology patients.

"Biologics positions us well as manufacturers bring new, innovative oncology products to the market and need the value-added services that McKesson provides," Paul Julian, executive vice president and group president of distribution solutions at McKesson, said in a statement.

The transactions will be funded by a combination of cash and incremental debt, and are expected to be completed by the first quarter of fiscal 2017.

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