US pharma giant
US drug distribution company , McKesson has signed a deal to acquire Rexall Health — a canadian retail pharma chain.Reuters

U.S. based pharmaceutical distribution company McKesson Thursday said it will buy two oncology (cancer care) firms Vantage Oncology and Biologics Inc. for $1 billion.

These acquisitions, according to an official statement, will enhance McKesson Specialty Health's services to patients, providers, payers and manufacturers.

The combined transactions will be funded through cash and incremental debt and the deals are expected to be closed in the first quarter of fiscal 2017, subject to customary closing conditions, including necessary regulatory clearances. 

These combined acquisitions will increase McKesson's specialty in pharmaceutical distribution scale, offer oncology-focused services and provide community based oncology services to patients and healthcare service providers.

Vantage -- provider of radiation, medical oncology and other cancer care services -- according to McKesson will broaden the company's scale in radiation oncology management services, adding more than 50 cancer centres across 13 states in the United States.

Biologics – oncology pharmacy services company – will extend McKesson's oncology expertise across patient care, allowing the company to engage its manufacturer partners with health care providers, patients and payers, the statement said.

"These investments will help offer additional value-based services to McKesson's manufacturer partners , expand our reach and pharmaceutical distribution scale as well as enhance delivery care for patients. "John Hammergren, chairman and chief executive officer, McKesson Corporation said.