JP Morgan Maintains Overweight on McKesson After Veteran's Affairs House Meeting
JP Morgan has published a research report on McKesson Corporation (NYSE: MCK) after the Veteran's Affairs House Committee hearing took place this morning.
In the report, JP Morgan writes, "The revised VA Solicitation submitted on January 9, 2012 included pricing requests for certain generic purchases, closing the loop on open market purchases. The most significant change in the revised solicitation (RFP) is that the VA asked distributors to include pricing terms for certain generics, WAC Based Priced Generics (WBPG). As defined these are: “any generic pharmaceutical that is not under a current Federal Government contract or pricing agreement.” Distributors were asked to submit pricing based on WAC plus or minus a fixed percentage compared with the negative distribution fee pricing on the remainder of the contract. The VA estimates WBGP purchases of ~$150 mil/year or ~3.5% of the total ~$4.4 bil/year purchasing estimate. Thus closing the loop on some open market purchases discussed at the hearing today."
JP Morgan maintains its Overweight rating on McKesson, which is currently trading up $1.04 from yesterday's $81.72 closing price.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.