- What’s McKesson’s next move, post-Celesio bid failure?
- What does Cardinal Health’s CEO think about Obamacare’s effects?
- Is Walgreen’s CEO overpaid?
- How much did Walgreens pay for Kerr Drug?
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McKesson Fails to Gain Stakeholder Support for Celesio Bid
The McKesson-Celesio deal is dead (for now). In case you missed the drama, hedge fund Elliott Advisors successfully forced McKesson to raise its bid to €23.50 per share. Alas, McKesson unexpectedly announced yesterday that they did not reach the 75% completion threshold for Celesio’s outstanding shares and convertible bonds. Since the deal was supported by Franz Haniel (which owns 50.01%) and Elliott, McKesson will probably try again, although the Business Week article suggests that "German rules restrict the renewal of a failed tender offer." McKesson probably seek a generic purchasing joint venture with one its customers. A Rite Aid-McKesson deal now seems more likely, as I suggested last month in Fortune magazine .
Why This $101 Billion Health Care Company Does Not Model Growth from Obamacare
Check out this great video interview with Cardinal Health Chairman and CEO George Barrett. He describes the CVS Caremark deal and provides a fascinating overview of the headwinds and tailwinds from the Affordable Care Act. This interview is definitely worth 4:19 of your time.
We should all be as fortunate as Walgreen's Wasson
Walgreens’ stock has been on a tear, up 57.2% in 2013 compared with a 31.8% rise in the S&P 500. Nonetheless, Crain’s Chicago Business published this hit piece last month on Walgreen Co. CEO Greg Wasson’s compensation. The paper writes that “...the drugstore chain has chosen to insulate him from certain costs resulting from his management and decision-making.” A true Chicago-style takedown. Of course, McKesson's John Hammergren could give Greg a lesson or two.
Walgreen Co, Form 10-Q For the Quarterly Period Ended November 30, 2013
Regular readers know that I’m a big fan of public company filings with the Securities and Exchange Commission. (C’mon, who isn’t?) Buried in Note 4 of Walgreens’ most recent quarterly 10-Q filing, I found this fascinating tidbit about the Kerr Drug acquisition: “In November 2013, the Company completed its acquisition of certain assets of Kerr Drug and its affiliates for $173 million, subject to adjustment in certain circumstances.” In 2012, Kerr Drug's retail drugstores and specialty pharmacy business had total sales of $381 million. Thus, Walgreens’ paid about 45% (=173/381) of revenues. Now you know.
New Antidepressant Makes Friends’ Problems Seem Worse
I prescribe two tablets before viewing your friend’s Facebook page.