Business Context and Reporting Period
Company: McKesson Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: August 31, 2016
Event: Receipt of a Second Request from the U.S. Department of Justice (DOJ) regarding the formation of a healthcare information technology company with Change Healthcare, Inc.
Key Financial Metrics
This filing is a current report regarding a regulatory event and does not contain financial statements. The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
- Regulatory Action: The DOJ issued a Second Request for additional information and documentary material under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
- Transaction Status: The request pertains to the Contribution and Sale Agreement dated June 28, 2016, between McKesson and Change Healthcare.
Guidance, Outlook, and Risks
- Expected Completion: Both parties continue to expect the transaction to be completed in the first half of calendar year 2017.
- Response Strategy: McKesson and Change Healthcare intend to respond as quickly as practicable and work cooperatively with the DOJ.
- Risks and Uncertainties:
- Timing or ultimate completion of the transaction is subject to closing conditions, including antitrust clearance.
- Completion of audited financial statements for the McKesson Technology Solutions businesses being contributed.
- Possibility that expected benefits may not materialize.
- Challenges in implementing the integration strategy for the new company.
- Market growth and performance risks for the respective products and services.
Investor Verification Checklist
- Verify the status of the DOJ antitrust review and the timeline for the Second Request response.
- Monitor for updates on the completion of audited financial statements for the contributed technology businesses.
- Track any changes to the expected transaction closing date (currently projected for H1 2017).
- Review subsequent filings for any material changes to the integration strategy or regulatory conditions.