Biologics, a Cary-based firm focusing on oncology-focused pharmacy services, is being acquired by McKesson Corporation.
Biologics is the largest independent oncology-focused specialty pharmacy in the U.S. according to McKesson.
The deal is one of two acquisitions made by McKesson (NYSE: MCK) in an announcement made Thursday.
In transactions totaling $1.2 billion, McKesson is adding Biologics and Vantage Oncology, a provider of radiation and medical oncology services as well as cancer care.
Biologics has grown rapidly over the past five years, its work force surging to 350 from 68. Last summer, the firm moved into a new headquarters in Cary.
The two firms will become part of McKesson Specialty Health. The deals are expected to close in the next few months.
“This is a historic moment for our company,” said Stuart Frantz, CEO of Biologics, in a statement. “I am absolutely thrilled that our team will be joining the McKesson family, who shares our deep commitment to building a strong corporate culture focused on supporting people as individuals and providing better health. Our employees, patients, providers and clients will all benefit from the exceptional healthcare service platform, depth of talent and diverse capabilities the McKesson/Biologics partnership will provide.”
Biologics launched in 1994. It is privately held.
“McKesson is committed to the success of our community oncology partners and customers and we believe the acquisitions of Vantage and Biologics complement our holistic approach to providing best–in-class care for oncology patients,” said John Hammergren, chairman and chief executive officer of McKesson.
“These investments will broaden McKesson’s practice management services and solutions that allow oncologists to focus on providing excellent patient care and provide additional support solutions that enhance care delivery for patients. We will also be able to offer additional value-added services to our manufacturer partners, expand our reach and pharmaceutical distribution scale, and provide care management and care coordination for payers as the industry moves towards value-based reimbursement models.”
Vantage will broaden the company’s scale in radiation oncology management services, adding more than 50 cancer centers across 13 states. Vantage operates a practice management model through joint ventures and shares profits with their partner physicians and hospitals. Vantage’s model of comprehensive oncology management services, including its focus on radiation oncology and urology, will complement and strengthen the existing offerings of McKesson and The US Oncology Network, keeping the business health of community-based oncology practices strong, while allowing patients to access the care they need in the most efficient and cost effective way.
Biologics will extend McKesson’s oncology expertise across the continuum of care for patients, allowing the company to engage its manufacturer partners in new ways and to enhance its value proposition to providers, patients and payers. The high-touch specialty pharmacy model provides controlled dispensing channels, including rapid and traceable pharmaceutical delivery solutions, increased analytics, and services for oncology patients, providing seamless care management.
