What's Happening?
Cencora, formerly known as AmerisourceBergen, has announced a definitive agreement to acquire a majority stake in OneOncology, a network of independent community oncology practices. This acquisition values
OneOncology at an enterprise valuation of $7.4 billion. Cencora will purchase the equity held by private equity firm TPG, which previously valued OneOncology at $2.1 billion in 2023. The transaction, expected to close by the end of the first quarter of 2026, will cost Cencora approximately $5 billion, including $3.6 billion for shareholders' equity and $1.3 billion to retire existing corporate debt. The acquisition will be funded through new debt financing. OneOncology, based in Nashville, Tennessee, operates 31 partner practices with about 1,800 providers across 365 care sites nationwide.
Why It's Important?
This acquisition is significant as it strengthens Cencora's position in the healthcare sector, particularly in oncology, by expanding its network of specialty practices. The deal aligns with Cencora's strategy to enhance its pharmaceutical distribution and services, providing a platform for its pharmaceuticals, care navigation tools, and clinical support services. The acquisition reflects confidence in the oncology market, with less perceived risk from political or Medicare Part B drug pricing changes anticipated in the future. This move also intensifies competition among major players in the drug distribution and wholesale space, as companies like Cardinal Health and McKesson Corporation have also been expanding their networks through similar acquisitions.
What's Next?
Following the acquisition, Cencora plans to leverage its expertise to support OneOncology's independent providers, enhancing the value offered to practices and improving patient care. The company aims to build on its recent acquisition of Retina Consultants of America and expand its U.S. drug distribution operations, including opening a second national distribution center. The integration of OneOncology is expected to enhance Cencora's research and clinical trial capabilities, technology resources, and physician leadership, driving value for stakeholders. The healthcare industry will likely monitor how this acquisition impacts competition and service delivery in the oncology sector.
