McKesson Corp (NYSE:MCK) stock rose 9.91% (As on November 7, 10:29:44 AM UTC-4, Source: Google Finance) after the company raised its annual profit forecast, driven by increased sales in its U.S. pharmaceuticals segment on robust demand for specialty and branded drugs. The U.S. pharma segment sells drugs used to treat complex conditions such as cancer and is McKesson’s largest unit by revenue. Sales from the segment rose 23% to $85.7 billion, driven by increased prescription volumes, specialty products, and GLP-1 medications, the company said. Analysts on average were expecting sales of $82.21 billion. The company had said in August that it anticipates continued GLP-1 medication growth year over year, however, with variability from quarter to quarter. U.S. Pharmaceutical Segment revenues were $85.7 billion, an increase of 23%. Prescription Technology Solutions Segment revenues were $1.3 billion, an increase of 11%. Medical-Surgical Solutions Segment revenues were $2.9 billion, an increase of 4%. International Segment revenues were $3.7 billion, an increase of 7%.

Further, McKesson announced an agreement to acquire a controlling interest in Florida Cancer Specialists & Research Institute LLC’s (FCS) Core Ventures. FCS, a practice with more than 530 providers, will remain independent and join The US Oncology Network (USON). The transaction is subject to customary closing conditions, including required regulatory clearance. USON expanded its footprint with the addition of Tennessee Cancer Specialists and Illinois CancerCare, adding 118 providers. McKesson announced an agreement to sell its Canada-based Rexall and Well.ca retail businesses. The transaction is subject to customary closing conditions, including required regulatory clearance. In October, McKesson launched InspiroGene, a dedicated business focused on supporting the commercialization of cell and gene therapies.

MCK in the second quarter of FY 25 has reported the adjusted earnings per share of $7.07, beating the analysts’ estimates for the adjusted earnings per share of $6.88. The company had reported the adjusted revenue growth of 21 percent to $93.65 billion in the second quarter of FY 25, beating the analysts’ estimates for revenue of $89.33 billion as per data compiled by LSEG. This is primarily driven by growth in the U.S. Pharmaceutical segment, which includes onboarding a new strategic partner and increased prescription volumes, including higher volumes from retail national account customers, specialty products, and GLP-1 medications.

The Texas-headquartered company now expects 2025 profit to be in the range of $32.40 to $33 per share, compared with its previous estimate of $31.75 and $32.55 per share.