(Reuters) – Drug distributer McKesson on Wednesday raised its full-year profit forecast after strong demand for specialty medicines and weight-loss drugs helped the company beat estimates for first-quarter results.
Share of the company were up more than 3% at $425.68 in extended trading.
Weight-loss drugs have seen an overwhelming demand surge in the United States, where more than 40% of Americans are grappling with obesity, according to government data.
The company’s results mirror that of peer AmerisourceBergen, which also raised its annual profit forecast earlier on Wednesday.
McKesson’s sales rose 11% to $74.5 billion, ahead of analysts’ estimates of $70.3 billion, according to Refinitiv data.
Its U.S. pharmaceutical segment’s revenue rose 18% to $67.2 billion, driven by increased prescription volumes and demand for specialty drugs and weight-loss medications.
Apart from specialty drugs – costly medications to treat complex, chronic and rare conditions such as cancer – McKesson’s U.S. pharmaceuticals unit also distributes products including branded and generic drugs as well as over-the-counter products and vaccines.
McKesson expects profit for 2024 to be in the range of $26.55 to $27.35 per share, from a prior forecast of $26.10 to $26.90 per share. Analysts estimate a profit of $26.63 for the year.
Excluding items, McKesson reported a profit of $7.27 per share for the quarter ended June, compared with estimates of $5.87.
(Reporting by Sriparna Roy in Bengaluru; Editing by Devika Syamnath)
