McKesson Corporation ( MCK ) recently
announced that its executive vice president and chief financial
officer (CFO), Jeffrey C. Campbell, will quit from his positions at
the end of Jun 2013 to join American Express
Company ( AXP ).
Campbell has been the CFO of McKesson during the last 10 years
and played a key role in the company's phenomenal growth trajectory
wherein revenues jumped significantly from $68 billion in fiscal
2004 to $122 billion in fiscal 2013.
Meanwhile, Nigel A. Rees, the current vice president and
controller, will assume the role of interim CFO, effective Jun 28,
until the time McKesson finds a permanent CFO.
Shares of the company were down 2.76% following the news to
close at $110.79.
We note that 2013 will be a challenging year for major
healthcare services providers such as McKesson and
AmerisourceBergen ( ABC ), given a slowdown
in generic launches.
McKesson expects contributions from recent acquisitions to help
combat the impact of the slowdown in generic launches. The company
believes revenues in its Distribution Solutions segment will
rebound in fiscal 2014 due to the addition of PSS World Medical and
demand from existing customers.
Growth in the Technology Solutions segment is also expected to
accelerate from fiscal 2013 levels primarily due to the impact of
We remind investors that McKesson acquired PSS World Medical in
Feb 2013. The addition of PSS World Medical to the company's
product line will amalgamate distribution capabilities along with
product and technology expertise of both businesses.
We believe the acquisition will further bolster the Medical
Surgical Distribution business of McKesson.
We expect the company to throw more light on the business
environment and its search for a new CFO at its upcoming investor
day on Jun 26, 2013.
McKesson currently carries a Zacks Rank #3 (Hold). Right now,
Cardinal Health, Inc. ( CAH ) looks attractive
with a Zacks Rank #2 (Buy).AMERISOURCEBRGN (ABC): Free Stock Analysis
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