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McKesson Report 2025

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2025

COMPANY TEARDOWN

McKesson

Alexa DiLuca

Marketing Manager

Michael McEwen

Pharmacy500 Market Analyst

michael.mcewen@rxinsider.com

Gregory Cianfarani, RPh

Founder & CEO

MEET THE

MARKET INTELLIGENCE TEAM

About RXinsider

Founded in 1999, RXinsider is a pharmacist-founded marketing/

communications (MARCOM) and market intelligence (INTEL) company

focused on pharmacy operations and the companies supporting

dispensing pharmacies. Through our publications, digital platforms,

market research, and training resources, RXinsider educates pharmacy

management and industry professionals on the products, services,

and trends that impact pharmacy operations across the supply chain.

RXinsider’s Market Intelligence (INTEL) Group performs market research

on the pharmacy operations supply chain and the Pharmacy500

companies. Through our weekly reports, digital awareness, and online

training, the INTEL Group educates Pharmacy500 professionals and

pharmacy management on the products and services impacting

pharmacy operations.

Jeff Rackliff

Pharmacy500 Market Analyst

jeff.rackliff@rxinsider.com

Emma Cidade

Pharmacy500 Market Analyst

emma.cidade@rxinsider.com

Lexi Cianfarani

Pharmacy500 Market Analyst

lexi.cianfarani@rxinsider.com

Report Lead

Lexi Cianfarani

A Breakdown of McKesson

The pharmacy operations supply chain contains many

companies that may be difficult to understand due to their size,

complexity, and dynamic M&A nature. The spirit of RXinsider’s

“Company Teardown” reports is to educate pharmacy

professionals, pharmacists, and pharmacy students on our

industry’s largest companies by simplifying, organizing, and

presenting publicly available information in a consistent and

organized format. Future Company Teardown reports will focus

on other complex companies including Cardinal Health, BD,

Cencora, Omnicell, RedSail, and others.

This McKesson Teardown report is independent and has not been

funded, reviewed, or edited by McKesson employees or company

representatives. All information in the following report is publicly

available. Company Teardown reports are training aids developed

for general education purposes and are biased toward presenting

the information we feel our pharmacy audience would find most

relevant. These reports may be incomplete, are general in nature,

and should not be used for making investing decisions. Please

refer to the McKesson website and 2024 annual report for details.

McKesson defines itself the following way: “McKesson is a

diversified healthcare services leader dedicated to advancing

health outcomes for patients everywhere. Their teams partner

with

biopharma

companies,

care

providers,

pharmacies,

manufacturers, governments, and others to deliver insights,

products, and services to help make quality care more accessible

and affordable.”

Table of Contents

• Introduction .................................................... 2-3

• Company Snapshot ..........................................4

• Strategic Initiatives ...........................................5

• McKesson History and Timeline ....................6

• Corporate Map (National) ................................7

• McKesson Division Breakdown .....................8

• McKesson Division Org Charts:

• U.S Pharmaceutical ....................................9

• Prescription Technology Serv. (RxTS) ...10

• Medical-Surgical ........................................12

• International ...............................................13

• McKesson Market Risks .........................14-15

• McKesson Ventures .......................................16

• Finance & Stock Performance ......................17

• Customers & Competition ............................18

• 2025 Conferences .........................................19

• References ......................................................20

• Pharmacy500 Companies .....................21-24

“Thanks to the hard work and

dedication to our 51,000-plus

employees, I know we will never

cease to find new ways to drive

a positive and lasting impact as

one Team McKesson.”

– CEO Brian Tyler

EMPLOYEE BREAKDOWN:

35,000 employees (U.S.)

13,000 employees (Canada)

3,000 employees (Europe)

Ranked ninth on Fortune500

$309B

FY24 revenue

285,000+

Customers served with medical-

surgical products

$270M

McKesson investments in technology generated

over $270 million in customer savings.

40M+

Pharmaceutical and medical

supply deliveries annually

COMPANY

SNAPSHOT

1,000+

Clinical trials actively enrolling

FISCAL YEAR:

April 1 — March 31

Connected to payers representing 94% of U.S. prescription volume

Strategic Initiatives of 2024

What’s new at McKesson?

•

Launched a new, centralized Human Resources (HR) portal and expanded capabilities for their virtual HR chatbot

to simplify processes, empower employees, and increase satisfaction.

•

Deployed a suite of new programs and technology enhancements to improve quality and productivity across

McKesson facilities, including the opening of two new distribution centers in the U.S. and continued the

modernization of our distribution network in Canada.

•

The U.S Oncology Network: The Network experienced record growth with the addition of several new practices,

expansion into four new states and for the first time, exceeded over 2,550 providers. Impact now extends to over

600 sites of care across 31 states.

•

The U.S Oncology Network: Rolled out Genospace clinical trial matching capabilities at the practices in The

Network.

•

Ontada: Integrated the biomarker testing guide and real-time genomics results into iKnowMed (EHR for

oncology).

•

Launch of a pilot initiative (Advancing Health Outcomes for All) aimed at advancing health equity in underserved

communities.

For more information, refer to the McKesson 2024 Annual Report.

CORE MCKESSON

INVESTMENTS

Artificial

Intelligence

Automation

Advanced

Analytics

Foundational Data

& Governance

McKesson

History and Timeline

1929: Despite the Great Depression, McKesson

achieved sales of $140 million.

1940s: McKesson Laboratories joins the wartime

effort through penicillin production.

1970s: Barcoded shelf labels and Economist™,

the 1st electronic order transmission system,

revolutionize drug distribution.

1990s: McKesson expands footprint by acquiring HBO

& Company, the world’s largest healthcare services

company and General Medical Supply, the nation’s largest

distributor of medical supplies and equipment. McKesson

also gained traction in Canada with the acquisition

of Medis Health and Pharmaceutical Services.

McKesson pioneers Acumax™, a barcode

warehouse-management solution.

1993: McKesson receives the Computerworld

Smithsonian Award for IT innovation.

1833: John McKesson and Charles Olcott open Olcott

& McKesson, a drug import and wholesale business.

1840s: McKesson forms the first-ever nationwide

wholesale pharmaceutical drug distribution network.

Ships carry McKesson products all over the world.

1853: To expand product offerings, John

McKesson partners with Daniel Robbins. McKesson

becomes the largest U.S. distributor of wholesale

pharmaceutical drugs, beverages and chemicals.

1900s

1800s

2000s

2010s

2006: McKesson acquires RelayHealth, the nation’s

leading pharmacy network. The CDC selects McKesson to

distribute vaccines for the Vaccines for Children Program.

2020s

2010: McKesson becomes a leader in specialty

cancer care with the acquisitions of The US

Oncology Network and US Oncology Research.

2017: McKesson acquires CoverMyMeds®

to provide patients cost-effective

solutions for medications.

2020: McKesson serves as the U.S. government’s

centralized distributor of COVID-19 vaccines and

ancillary supply kits; McKesson Europe distributes

COVID-19 vaccines in several countries.

2021: McKesson launches Ontada, an oncology business

designed to advance cancer research and care.

2024 and Beyond: Establishing new

ventures to broaden scope and innovate as a

diversified healthcare services leader.

McKesson Corporate Office Locations

(National)

HQ – Gold Star

Distribution

Pharmacy Technology and Services (RxTS)

CoverMyMeds (Under RxTS)

Oncology & Specialty

McKesson Ventures

KEY:

INTERNATIONAL LOCATIONS:

Laint-Laurent Quebec, CA

London, UK

McKesson Divisions Breakdown

U.S. Pharmaceutical

U.S. Pharmaceutical is a reportable segment that distributes branded, generic, specialty, biosimilar,

and over-the counter pharmaceutical drugs and other healthcare-related products in the United States

(“U.S.”). This segment also provides practice management, technology, clinical support, and business

solutions to community-based oncology and other specialty practices. In addition, the segment sells

financial, operational, and clinical solutions to pharmacies (retail, hospital, alternate sites) and provides

consulting, outsourcing, technological, and other services.

McKesson operates its business in four reportable segments:

U.S. Pharmaceutical, Prescription Technology Solutions (“RxTS”),

Medical-Surgical Solutions, and International.

Prescription Technology Solutions

(RxTS)

Prescription Technology Solutions (RxTS) is a reportable segment that combines automation and

McKesson’s ability to navigate the healthcare ecosystem to connect patients, pharmacies, providers,

pharmacy benefit managers, health plans, and biopharma to address patients’ medication access,

affordability, and adherence challenges. RxTS also offers prescription price transparency, benefit

insight, dispensing support services, as well as third-party logistics and wholesale distribution support

across various therapeutic categories and temperature ranges to biopharma customers throughout

the product lifecycle.

Medical-Surgical Solutions

Medical-Surgical Solutions is a reportable segment that 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. This segment offers national

brand medical-surgical products as well as McKesson’s own line of high-quality products through a

network of distribution centers within the U.S.

International

International is a reportable segment that includes our operations in Canada and Europe, bringing

together non-U.S.-based drug distribution services, specialty pharmacy, retail, and infusion care

services. McKesson’s Canadian operations deliver medicines, supplies, and information technology

solutions throughout Canada and includes Rexall Health retail pharmacies. During fiscal 2023,

McKesson completed transactions to sell certain of our businesses in the European Union (“E.U.

disposal group”), and their retail and distribution businesses in the United Kingdom (“U.K. disposal

group”). McKesson’s remaining operations in Europe provide distribution and services to wholesale

and retail customers in Norway where they own, partner, or franchise with retail pharmacies.

Retail National

Accounts

Community

Pharmacy and Health

Institutional

Healthcare

Providers

Oncology, Biopharma,

and Other Specialty

Partners

Central FillSM

Prescription refill service

Strategic Redistribution Centers

Two inventory facilities totaling over

740,000 square feet for single source

warehouse purchasing

McKesson SynerGx®

Generic drug purchasing, distribution,

and inventory management solution

Inventory Management

An integrated solution of forecasting

software and automated replenishment

technologies

ExpressRx TrackTM

Pharmacy automation solution

Health Mart®

A national network of approximately

4,500 independently-owned pharmacies

Health Mart Atlas®

Comprehensive managed care services

that help community pharmacies

McKesson Reimbursement AdvantageSM

(“MRA”)

Reimbursement optimization package

that includes financial services, analytic

services, and customer care.

McKesson Provider Pay®

Provider Pay is an automated

reconciliation and payment management

solution

McKesson OneStop Generics®

Generic pharmaceutical purchasing

program

Pinpoint Community Solutions

An inventory management system

targeted to independent pharmacy

owners with five or fewer stores

FrontEdgeTM

Strategic planning, merchandising, and

price maintenance program

McKesson RxOwnership Program

A no-fee resource for pharmacists and

pharmacy owners interested in buying,

starting, or selling an independent

pharmacy

RxO Advisory Services

A suite of supply chain management,

pharmacy optimization, and 340B

program advisory services

McKesson Plasma and Biologics

Specialty and plasma drug distributor

Outpatient and Specialty Pharmacy

A portfolio of services and solutions

customized to each customer’s business

and clinical strategy

Contracting and Contract/Purchasing

Optimization

Solutions across generics, specialty,

branded products, biosimilars, and 340B

products, for inpatient and outpatient

settings

Supply Assurance

Solutions and strategies to enhance

product availability and manage inventory

of critical items.

Patient Assistance Solutions

Technologies and services that enable

health systems and providers to better

financially support their patients and

community benefit programs

Onmark®

Group purchasing organizations (“GPO”)

SCRI Oncology, LLC

An oncology research business (51%

controlling interest)

Ontada®

McKesson’s oncology technology and

insights business

Biologics by McKesson

An independent specialty pharmacy in

oncology and other complex and rare

diseases

The US Oncology Network

Network of phsyician-led, integrated,

community based oncology practices

dedicated to advancing high quality,

evidence based cancer care

ClarusONE Sourcing Services LLP

Joint venture with Walmart Inc. that

sources generic pharmaceutical

drugs

Masters Pharmaceutical

A national drug distributor

specializing in independent, chain,

specialty, LTCs, and mail-order

pharmacies

McKesson Pharmacy Systems

Clinical workflow suite of solutions

EnterpriseRx

Pharmacy Management System

(In MPS)

Macro Helix

Develops innovative technology

and solutions for covered entities

and contract pharmacies for 340B

program participation

Supplylogix

A McKesson company providing

innovative pharmacy supply chain

solutions

McKesson ConnectSM

An internet-based ordering system

that provides item look-up and real-

time inventory availability

Other

McKesson Division:

U.S. Pharmaceutical

McKesson U.S Pharmaceutical segment has four primary customer pharmaceutical distribution

channels:

(i) retail national accounts (which include national and regional retail chains, food and drug combinations,

mail order pharmacies, and mass merchandisers.)

(ii) community pharmacies and health (formerly described as independent, small, and medium chain retail

pharmacies)

(iii) institutional healthcare providers (such as hospitals, health systems, integrated delivery networks, and

long-term care providers)

(iv) oncology, biopharma, and other specialty partners

CoverMyMeds

Rx Savings Solutions

(RxSS)

RelayHealth

Connectivity solutions that enable

consumers and healthcare organizations to

securely exchange information

RxCrossroads by McKesson

Provides commercial support, customized

pharmacy dispensing, and logistics

services to manufacturers

McKesson Third Party LogisticsSM

Third-party logistics provider, is a d/b/a for

RxCrossroads

McKesson Prescription Automation

High-volume pharmacy dispensing

software

Central Fill as a Service (CFaaS)

Pay-per-script centralized fulfillment

solution

Software that helps employers,

health plans and members

reduce prescription drug costs

Electronic prior authorization

solutions (encompasses

RelayHealth, RxCrossroads

by McKesson, McKesson

Prescription Automation and

CoverMyMeds)

Helped to prevent an estimated

10.7 million prescriptions

from being abandoned due to

affordability challenges.

RxTS helped patients save more

than $8.8 billion on brand and

specialty medications

McKesson Division:

Prescription Technology

Solutions (“RxTS”)

RxTS offers innovative solutions created to benefit healthcare stakeholders. Its

comprehensive solution suites span across the entire patient journey, including

medication access and affordability, prescription decision support, prescription

price transparency, benefit insight and dispensing support services, as well as

third-party logistics and wholesale distribution support, to help increase speed

to therapy, reduce prescription abandonment, and support improved health

outcomes for the patient.

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