McKesson: Celesio domination agreement slightly earlier than expected; should yield synergy visibility in FY2H'15 -- ISI Group
ISI Group views announcement as a clear positive for MCK as the Domination Agreement should be completed sooner than previously anticipated. The press release implies that the Domination Agreement will be in force by the start of MCK's FY2Q15 (CY3Q14) and will thus provide upside to firm's prior Celesio synergy assumptions with improved clarity on the synergy ramp throughout the back half of CY2012. As such, firm would expect to see further upside bias to FY15 numbers via generic procurement, supply chain rationalization, and the pharmacy / banner roll out.