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Jennifer Chiou
Jennifer Chiou
Articles (195) 

McKesson Officer Sells 101,835 Shares of Company

Company announced in September plans to acquire pharmaceutical distribution division of UDG Healthcare

October 15, 2015 | About:

McKesson Corp. (MCK) CEO, President and Chairman John Hammergren (Insider Trades) sold 101,835 shares of the company on Oct. 12. The average price per share was $190.51. McKesson is a healthcare service and information technology company dedicated to making the business of healthcare run well. The company has a market cap of $44.11 billion and a P/S ratio of 0.24.

The number and volume of insider sells ranged from 24 to 45, and 724,166 shares to 1,718,598 shares from 2012 to 2015. Despite the nearly 100% increase of month end price in those years, the number and volume of insider sells did not increase accordingly. On average, each insider buy during this period of time amounted to about 30,000 shares. Hammergren sold 2,750,000 shares of the company in 21 transactions since August 2010. His earliest transaction increased about twofold since then. There were no insider buys during this time. 1444860871892.png 1444860878438.png For more information about insider transactions of the company, click here.

The company reported a net income of $576 million, or $2.49 per share, in the second quarter of 2015. In comparison, the company reported a net income of $403 million, or $1.75 per share, in the second quarter of the previous year. Revenue for the company also increased from $43.476 billion, to $47.546 billion in the same period of time. Annual revenue increased 11.07% and annual net income for the company also increased 3.1% since 2010. 1444862054442.png 1444862089430.png On Sept. 18, McKesson announced the agreement to purchase the pharmaceutical distribution division of UDG Healthcare PLC (UDG). UDG is based in Northern Ireland (United Drug Sangers) and Republic of Ireland (United Drug). Under the terms of the agreement, McKesson will acquire United Drug and United Drug Sangers, leading wholesale operations across the Republic of Ireland and Northern Ireland. More than 1,000 UDG employees will join McKesson as part of the acquisition. McKesson also announced the signing of a five-year distribution agreement with Albertsons on Sept. 15. The distribution agreement includes the sourcing and distribution of both branded and generic pharmaceuticals and is commencing on April 1, 2016. As part of the agreement, Abertsons’ network of pharmacies in stores across the United States will benefit from McKesson’s OneStop generics program and daily direct-to-store service model.

According to GuruFocus.com information, McKesson Corp. has a business predictability rank of 3 out of 5 stars. For more information about business predictability rank, click here.

Two gurus sold out all their held shares with McKesson in the second quarter of 2015. Daniel Loeb (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) sold 625,600 shares and 432,691 shares, respectively. For more information about guru trades with McKesson, click here.

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