Cencora to take majority control of cancer care network OneOncology for $5 billion

By Padmanabhan Ananthan

Dec 15 (Reuters) - U.S. drug distributor Cencora COR.N said on Monday it will take majority control of cancer care network OneOncology in a $5 billion deal, accelerating its push to provide more services to cancer clinics.

Cencora, which already owns a stake in OneOncology, will buy most of the remaining shares from investment firm TPG TPG.O and other holders for about $3.6 billion in cash and pay off $1.3 billion of OneOncology's debt, for total cash consideration of about $5 billion.

The deal, which values OneOncology at $7.4 billion, also provides Cencora synergies in specialty drugs for complex conditions like cancer - a segment which offers high margins and has seen a surge in demand.

Shares of Cencora were up 1% in morning trading.

The company in November pledged to invest $1 billion through 2030 to expand its U.S. distribution network, aligned with White House calls for pharmaceutical manufacturers and distributors to boost domestic production.

"In our view, COR's acceleration of its OneOncology acquisition is a solid move as it completes a logical (and expected) step to increase exposure to faster growing oncology assets," Leerink Partners analyst Michael Cherny said.

The transaction is expected to close by the end of Cencora's second quarter of fiscal 2026. Cencora plans to fund the purchase with new debt.

J.P. Morgan analyst Lisa Gill said she also views the deal positively due to synergies from having full ownership of OneOncology.

Cencora maintained its fiscal 2026 earnings forecast but said that because it is halting share buybacks ahead of the deal, earnings are now more likely to come in at the lower half of its prior range of $17.45 to $17.75 per share.

The company, however, raised its long-term adjusted profit view, as it expects OneOncology to contribute to its U.S. healthcare business over time.