Mckesson Corp (MCK)

Business Description

McKesson Corporation is a leading healthcare services and information technology company that operates through four main segments, focusing on the distribution of pharmaceutical and medical products, which account for the majority of its revenues . The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and healthcare-related products in the United States, and provides practice management, technology, clinical support, and business solutions to specialty practices . McKesson also addresses medication access and affordability challenges, offers medical-surgical supply distribution, and operates internationally in Canada and Europe .

U.S. Pharmaceutical - Distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products in the United States, and provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices .
Prescription Technology Solutions (RxTS) - Addresses medication access, affordability, and adherence challenges by connecting patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies, offering prescription price transparency, benefit insight, dispensing support services, and third-party logistics .
Medical-Surgical Solutions - Provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies, offering national brand medical-surgical products and McKesson's own line of products .
International - Includes operations in Canada and Europe, providing non-U.S.-based drug distribution services, specialty pharmacy, retail, and infusion care services, with Canadian operations delivering medicines, supplies, and information technology solutions, and European operations focusing on distribution and services in Norway .

Key Metrics

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Executive Team

Name	Position	Start Date	Short Bio
Brian S. Tyler	Chief Executive Officer	April 2019	Brian S. Tyler has served as the Chief Executive Officer of McKesson Corporation since April 2019. He has held various leadership positions within McKesson and has over 25 years of business and healthcare experience .
Britt J. Vitalone	Executive Vice President and Chief Financial Officer	January 2018	Britt J. Vitalone has been serving as the Executive Vice President and Chief Financial Officer of McKesson Corporation since January 2018. He has been with the company for 17 years as of the fiscal year 2023 .
Michele Lau	Executive Vice President and Chief Legal Officer	January 1, 2024	Michele Lau is the Executive Vice President and Chief Legal Officer at McKesson Corporation, a position she will hold starting January 1, 2024. She previously served as the Chief Legal Officer at GoDaddy .
LeAnn B. Smith	Executive Vice President and Chief Human Resources Officer	December 2022	LeAnn B. Smith is the Executive Vice President and Chief Human Resources Officer at McKesson Corporation since December 2022. She previously worked at Walmart Inc. as the Chief People Leader for Global Corporate Functions .
Thomas L. Rodgers	Executive Vice President and Chief Strategy and Business Development Officer	June 2020	Thomas L. Rodgers has been serving as the Executive Vice President and Chief Strategy and Business Development Officer at McKesson Corporation since June 2020. He was previously the Senior Vice President and Managing Director of McKesson Ventures .

Questions to Ask Management

With the acquisition of Rx Savings Solutions aiming to provide price transparency to employers and employees, how does McKesson plan to leverage this capability to impact drug pricing or influence drug utilization patterns, and what is the long-term strategic vision for integrating this asset into your overall strategy?
Given the evolving landscape of U.S. retail pharmacies and the closures of many stores, would McKesson consider changing its domestic strategy by owning a virtual pharmacy to capitalize on emerging opportunities, despite previous beliefs about customer conflict and operational challenges?
As oncology care shifts towards value-based models, how is McKesson adapting its services to support providers in this transition, and what specific initiatives or partnerships are you pursuing to facilitate success in value-based oncology care?
In light of competitive pressures from companies serving both acute care facilities and alternate sites, especially with large integrated delivery networks (IDNs) owning both assets, how does McKesson plan to address potential market changes and growth opportunities, and is there a need to rethink your approach to the medical distribution market?
Considering your expansion into specialties like retina and ophthalmology through acquisitions, does McKesson have plans to build comprehensive platforms in other specialty areas similar to your oncology platform, and how do you evaluate the potential for achieving similar success outside of oncology?

Program Details	Program 1
Approval Date	July 2024
End Date/Duration	N/A
Total additional amount	$4.0 billion
Remaining authorization amount	$8.6 billion
Details	The Board approved an increase in the authorization for the repurchase of common stock.

Debt Maturity Schedule

Year	Amount Due (in millions)	Debt Type	Interest Rate	% of Total Debt
2025	$1,167	0.90% U.S. Dollar Notes, 1.50% Euro Notes	0.90%, 1.50%	20.3% = (1,167 / 5,744) * 100
2026	$1,055	1.30% U.S. Dollar Notes, 1.63% Euro Notes	1.30%, 1.63%	18.4% = (1,055 / 5,744) * 100
2027	$150	7.65% U.S. Dollar Debentures	7.65%	2.6% = (150 / 5,744) * 100
2028	$742	3.95% U.S. Dollar Notes, 4.90% U.S. Dollar Notes	3.95%, 4.90%	12.9% = (742 / 5,744) * 100
2029	$1,298	4.75% U.S. Dollar Notes, 4.25% U.S. Dollar Notes, 3.13% Sterling Notes	4.75%, 4.25%, 3.13%	22.6% = (1,298 / 5,744) * 100
2033	$597	5.10% U.S. Dollar Notes	5.10%	10.4% = (597 / 5,744) * 100
2041	$218	6.00% U.S. Dollar Notes	6.00%	3.8% = (218 / 5,744) * 100
2044	$255	4.88% U.S. Dollar Notes	4.88%	4.4% = (255 / 5,744) * 100

Competitors

Competitors mentioned in the company's latest 10K filing.

Cencora, Inc. - Mentioned as one of the largest competitors in distribution, wholesaling, and logistics .
Cardinal Health, Inc. - Mentioned as one of the largest competitors in distribution, wholesaling, and logistics .

Customer Concentration

Customer	Relationship	Segment	Details
CVS Health Corporation	Pharmaceutical distribution partner; extended to June 2027.	All	Revenue: 28% of total consolidated revenues ($308,951 million) = $86,506 million.<br>Accounts Receivable: 24% of net trade accounts receivable ($21,622 million) = $5,189 million.

Auditor

Name	Start Date	End Date	Reason for Change
Deloitte & Touche LLP	May 7, 2024	Present	Current auditor