Cencora, Inc. (COR – Free Report) recently completed the previously announced acquisition of Retina Consultants of America (“RCA”), a leading management services organization (“MSO”) of retina specialists.
This acquisition enhances Cencora’s leadership in specialty healthcare and expands its MSO solutions, aiming to deliver greater value to physicians and patients.
Likely Trend of COR Stock Following the News
Following the announcement, shares of the company closed flat at $224.74 yesterday. In the past year, COR’s shares have gained 6.8% against the industry’s decline of 12.5%. The S&P 500 has gained 25.9% in the same time frame.
The acquisition of RCA positions Cencora to capitalize on the growing demand for specialized retinal care. By integrating RCA’s advanced care capabilities with its existing specialty healthcare solutions, Cencora can enhance the company’s value proposition to both physicians and patients, potentially driving higher revenue growth. Moreover, the synergies from this acquisition, combined with the raised earnings guidance for fiscal 2025, are likely to bolster investor confidence and create upward momentum in COR’s share price in the long term.
Meanwhile, COR currently has a market capitalization of $43.43 billion. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $317.1 million, indicating 7.9% growth from the reported figure of fiscal 2024.
Image Source: Zacks Investment Research
Details on the COR’s Acquisition of RCA
RCA is a prominent network of retina specialists providing advanced care for conditions such as macular degeneration, diabetic retinopathy and geographic atrophy.
Cencora has acquired an 85% stake in RCA, while some RCA physicians and management team members retain a minority ownership. The deal involved a cash payment of $4.4 billion, which includes costs like transaction fees, debt repayment and cash investments into RCA, with final adjustments expected later. This acquisition strengthens Cencora’s position in specialty healthcare, expands its MSO solutions and aims to deliver greater value to key stakeholders, including doctors and patients.
Following the acquisition, Cencora has updated its fiscal year 2025 guidance. The company has raised its adjusted diluted earnings per share (EPS) guidance to $15.15-$15.45 from the previous range of $14.80-$15.10.
COR’s Past Strategic Acquisitions
Cencora has been actively pursuing acquisitions to enhance its core areas. In 2023, the company acquired a minority stake in OneOncology, a network of leading oncology practices. This acquisition was aimed at strengthening Cencora’s relationship with community oncologists and expanding its specialty solutions in oncology. Additionally, Cencora announced the acquisition of H.D. Smith, the largest independent wholesaler in the United States, further expanding its capabilities in pharmaceutical distribution.
In a strategic move to diversify its portfolio, Cencora acquired MWI Veterinary Supply, broadening the company’s reach into the growing animal health market. MWI offers a wide range of products, including pharmaceuticals, vaccines, parasiticides, diagnostics, capital equipment, supplies, pet food and nutritional products. This acquisition, alongside organic growth, new product innovations and market share gains, has contributed significantly to Cencora’s Other business unit.
In 2021, Cencora also sealed a deal with Walgreens Boots Alliance, acquiring the majority of it, which is their Alliance Healthcare business, for approximately $6.5 billion. The transaction, which included $6.275 billion in cash and 2 million shares of Cencora common stock, closed in June. This acquisition has enhanced Cencora’s ability to deliver sustained growth through pharmaceutical distribution and manufacturer services, expanding its scale and service offerings. This positions Cencora for continued leadership and local expertise, strengthening its global footprint and ability to support pharmaceutical innovation.
Favorable Industry Prospects for COR
Per a report by Grand View Research, the global retinal disorder treatment market size was valued at $12.57 billion in 2022 and is anticipated to witness a CAGR of 9.3% from 2023 to 2030. The retinal disorder treatment industry is witnessing growth due to factors such as the growing incidence of retinal disorders globally and the need for efficient and cost-effective treatment options. The presence of promising pipeline products is expected to boost the market growth in the forecast period. The rising prevalence of retinal disorders is anticipated to propel market growth over the forecast period.
COR’s Zacks Rank & Stocks to Consider
COR carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are Masimo (MASI – Free Report) , Accuray (ARAY – Free Report) and Abbott Laboratories (ABT – Free Report) .
Masimo, carrying a Zacks Rank #2 at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 31.7% against the industry’s 1% decline in the past six months.
Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.
ARAY’s shares have gained 8.8% against the industry’s 1% decline in the past six months.
Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.
ABT’s shares have risen 8.5% in the past six months compared with the industry’s 7.2% growth.
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