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McKesson Drops HBOC From Name

July 26, 2001|From Bloomberg News

McKesson Corp., the second-biggest U.S. drug wholesaler, said Wednesday that it changed its name to drop HBOC, which the company had added when it purchased a troubled health-care software business.

McKesson became McKesson HBOC Inc. after its $13.9-billion purchase of software maker HBO & Co. in January 1999. The merged company had a $9-billion one-day loss in market value in April 1999 after its announcement that HBO had prematurely booked more than $40 million in sales.

The accounting problems led to the ouster that year of McKesson Chief Executive Mark Pulido and Chairman Charles McCall. The company is defending itself against a class-action securities lawsuit that accuses the company and its advisor, Bear Stearns Cos., of hiding accounting problems.

San Francisco-based McKesson said its fiscal first-quarter profit rose 42% as the company's software business recovered and pharmacies bought more medicines.

McKesson shares rose 55 cents to close at $38.40 on the New York Stock Exchange.

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