Citi Reports On MCK's Investor Day

Citi is keeping its Hold rating and its $89 price target on McKesson Corp. MCK following the company's recent Investor Day. Says Cit, in its report, “McKesson recently held its annual investor day in Boston. While little new was detailed and F2012 guidance was reiterated, management's presentation made us increasingly optimistic on the positive financial impact of the upcoming wave of generic drug launches. We estimate that new, single source generic drug launches could be up to 20x as profitable as the brand drug sales they displace. We estimate that ~$20 billion in branded drug sales will see single source generic introductions during MCK's F2012. Single source generic Lipitor could boost F2012 by as much as $0.20, 10x the ~$0.02 contributed to MCK's annual EPS.” MCK closed yesterday at $83.85.