NEW YORK (AP) — Medical supplies distributor McKesson Corp. has said
that an interim court order has stalled its $560 million cash acquisition of US
Oncology Holdings Inc.
The order by the Supreme Court of the State of New York was granted Tuesday
until an evidentiary hearing scheduled for Jan. 10, the company said in a filing
with the Securities and Exchange Commission.
The order stemmed from a case brought against McKesson by the Cancer Clinics
of Excellence, a network of oncology practices. The Cancer Clinics of Excellence
said the deal was a breach of an agreement between itself and McKesson,
according to the filing.
Cancer Clinics of Excellence is seeking an injunction prohibiting the
acquisition and unspecified damages. McKesson said it believed the court’s
interim order was “granted in error” and that it intends to appeal the order and
to close the deal as soon as possible.
McKesson’s deal to buy US Oncology, which provides drugs and services to 500
cancer centers across the U.S., was announced last month. The company said at
the time the deal would lower costs from shared operations because of the
overlap in goods and services provided by the two companies. McKesson said the
combined company will serve more than 3,000 cancer specialists.
Originally operating as a pharmaceutical distributor,
McKesson has broadened operations to provide billing and health information
technology services to hospitals and doctor’s offices.
Shares of McKesson slipped 44 cents to $70.53 in after-hours trading. The
stock closed up $1.02 at $70.97 during the regular session.