:max_bytes(150000):strip_icc()/GettyImages-2158731237-d03764704940468e87a40374ed7b0344.jpg "McKesson Revenue Hurt by Supply and Demand Issues for Weight-Loss Drugs")
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Key Takeaways
- McKesson said that limited access to weight-loss treatments because of short supplies is negatively impacting its services sales.
- Fiscal 2025 first-quarter revenue was well short of analysts’ estimates.
- McKesson warned of a slowdown in the growth rate for the unit that services patients on weight-loss medications.
McKesson (MCK) shares tumbled Thursday, a day after the healthcare services provider warned that limited supply of GLP-1 weight-loss drugs is hurting sales.
McKesson reported first-quarter fiscal 2025 revenue rose 6.4% year-over-year to $79.3 billion, more than $3 billion below the average estimate of analysts surveyed by Visible Alpha. Adjusted earnings per share (EPS) of $7.88 exceeded forecasts.
Sales at the company’s Prescription Technology Solutions segment, which includes services to patients on GLP-1 treatments, were flat from the year earlier at $1.2 billion.
Chief Financial Officer (CFO) Britt Vitalone said that “demand for our access solutions, including prior authorization volumes related to GLP-1 medications, demonstrated a slower rate of growth compared to the prior year.”
McKesson Cuts Guidance for Prescription Technology Solutions Segment
Vitalone added that the company now anticipates full-year revenue for the Prescription Technology Solutions segment will be up 14% to 18% and operating profit will climb 11% to 15%, down from its previous outlooks of 18% to 22% and 12% to 16%, respectively.
McKesson lifted its full-year adjusted EPS guidance to $31.75 to $32.55 from the earlier range of $31.25 to $32.05.
Shares of McKesson dropped about 12% to $545.18 as of 1:55 p.m. ET Thursday but remain almost 18% higher year-to-date.