) recently announced that it has inked a deal with Emendo Ltd. to
acquire the latter. Emendo has developed CapPlan, which is
utilized in more than 40 hospitals across New Zealand, Australia,
Canada and the UK to optimize operational efficiency by
forecasting patient demand and plan resourcing.
CapPlan is a system which forecasts workloads covering long-term
and short-term trends. It helps hospitals to allocate resources
efficiently and recognize unnecessary costs. CapPlan uses
clinician schedules, workloads, patient flow, length of stay and
discharges in its forecasting process. The company stated that a
400-bed hospital using CapPlan has saved $895,000 for inpatient
areas. We believe the acquisition of Emendo will complement
McKesson's technology solutions segment.
The company has been pursuing acquisitions regularly to
supplement organic growth. Last month, McKesson entered into an
agreement to buy
PSS World Medical, Inc.
) for $29.00 per share in cash. The total value of the deal, in
which McKesson will assume PSS World Medical's debt, is estimated
to be approximately $2.1 billion.
McKesson expects to generate more than $100 million in annual
savings (pre-tax) by the fourth year after the closure of the
deal. On the second quarter 2013 conference call, the company
stated that the deal is expected to add earnings of 15 to 25
cents per share after a year of closing.
AMERISOURCEBRGN (ABC): Free Stock Analysis
MCKESSON CORP (MCK): Free Stock Analysis
PSS WORLD MED (PSSI): Free Stock Analysis
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The company also announced that it will purchase Med3000, a
health care management and technology service company. The deal,
expected to be completed in the next few months, should boost the
medical billing and practice management services of revenue
management solutions at McKesson apart from facilitating its
expansion into high potential markets.
Neutral on McKesson
We currently have a Neutral recommendation on McKesson. The stock
carries a Zacks #3 Rank (Hold rating) in the short run.
We are encouraged by the company's acquisition strategy for
expansion but the competition in the pharmaceutical distribution
market remains tough, which includes players like