Daily Brief Health Care: Sichuan Kelun Pharmaceutical, Mckesson Corp and more

In today’s briefing:

Merck Puts Eye-Popping $9.3B in ADC Deal with Kelun – The “New Story” Is About to Begin
McKesson Corporation: Initiation of Coverage – Business Strategy & Recent Developments
McKesson Corporation: Initiation of Coverage – Business Strategy & Recent Developments

Merck Puts Eye-Popping $9.3B in ADC Deal with Kelun – The “New Story” Is About to Begin

Merck entered into an agreement with Kelun to develop seven new ADC candidates. Merck will pay an upfront payment of US$175 million, with milestone payments worth up to US$9.3 billion.
It’s a strong signal that Merck gives up acquiring Seagen and fully embraces Kelun. Merck may not just simply recognize Kelun’s ADC candidates but is optimistic about its ADC platform/technology.
Chinese pharmaceutical enterprises are becoming more pragmatic and peaceful in licensing cooperation, which has more trend significance for the development of industry than the value of a product or an enterprise.

McKesson is one of the leading U.S. healthcare distributors and operates in an oligopolistic market along with rivals, Cardinal Health and AmerisourceBergen.
The company has continued its efforts towards improving its competitive edge in cancer and biopharma services through internal investment and acquisition.
The Medical-Surgical business has achieved market-leading positions in the primary and extended care markets through years of deliberate investment and expansion.

This is our first report on leading U.S. healthcare distributor, McKesson.
The company delivered a mixed quarterly result with revenues of $70.2 billion falling short of the Wall Street consensus.
McKesson is also extending its services to additional channels like the government, consumer, and direct-to-home sectors in response to the requirements of the patients.

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