Summary of McKesson Corporation's Annual Evercore ISI HealthCONx Healthcare Conference Company Overview - **Company**: McKesson Corporation (NYSE: MCK) - **Date of Conference**: December 4, 2024 - **Participants**: Britt Vitalone (CFO), Elizabeth Anderson (Evercore ISI) Key Points Industry Focus - McKesson is focused on the healthcare services industry, particularly in **Oncology** and **Biopharma Services** [2][4][12]. Financial Performance - **Q2 Earnings**: Revenue growth of **21%** year-over-year, adjusted operating profit growth of **7%**, and adjusted earnings per share growth of **13%** [4]. - **Operating Cash Flow**: Approximately **$2.1 billion** with free cash flow of about **$1.9 billion** [4]. - **Tax Rate Guidance**: Anticipated tax rate of **17% to 19%** for the full year, with a higher rate of **23% to 26%** expected in Q3 [5][6]. Growth Strategies - Continued investment in **automation** and **AI** to enhance customer service and operational efficiency [3][26]. - Focus on **U.S. Pharma** business diversification, including partnerships and capabilities in oncology [8][12]. - **Biosimilars**: 61 biosimilars developed, with 41 launched, providing more clinical choices and cost opportunities [14][15]. Oncology and Biopharma Services - Oncology revenue projected at **$35 billion** this year, with higher growth and margin capabilities [11]. - Clinical trial management has seen a **25%** increase in patient accruals this year [10]. - The U.S. Oncology network has grown to over **2,750 providers** [9][40]. MedSurg Business - Long-term growth target of **10% to 12%** AOI, with a focus on following patient care trends outside hospital settings [17][18]. - Announced **$100 million** in cost savings through operational alignment and efficiency improvements [21][23]. International Business - Strong growth in Canada, leveraging distribution services and sourcing operations [30][32]. - Planned divestiture of **Rexall** to refocus on distribution capabilities [32]. Capital Deployment - Prioritization of growth in high-margin areas like oncology and biopharma services, alongside returning capital to shareholders through dividends and share repurchases [63][65]. - Recent **15%** increase in dividends approved by the board [65]. Supply Chain and Sourcing - **ClarusONE** sourcing engine enhances supply chain efficiency and ensures product availability [47][49]. - Focus on quality and diversification of suppliers to mitigate risks from potential trade policy changes [52][53]. Data and Technology - Emphasis on leveraging data from the **Relay network** to enhance clinical outcomes and support drug development [72][75]. - AI and automation are being utilized for working capital management and improving customer experience [26][28]. Competitive Landscape - McKesson maintains strong relationships with national retail and independent pharmacies, focusing on creating value through partnerships and efficiencies [68][69]. Investor Insights - The growth potential and differentiation of McKesson's oncology and biopharma services platforms may not be fully appreciated by investors [72][74]. Conclusion McKesson Corporation is strategically positioned in the healthcare services industry, focusing on growth through innovation, partnerships, and operational efficiencies. The company is committed to enhancing shareholder value while navigating the complexities of the healthcare landscape.

Core Viewpoint - McKesson Corporation (MCK) has shown strong performance in the year-to-date period, with shares increasing by 34.1%, significantly outperforming the industry growth of 2.9% and the S&P 500's rise of 24.5% [1] Company Overview - McKesson is a healthcare services and information technology company based in San Francisco, CA, operating through two segments: Distribution Solutions and Technology Solutions [2] Growth Factors - The increase in MCK's shares is attributed to the robust performance of its U.S. Pharmaceutical business, driven by solid second-quarter results and rising healthcare demand, although weak pricing trends remain a concern [3] - McKesson raised its adjusted earnings per share (EPS) guidance for fiscal 2025 to a range of $32.40-$33.00, up from the previous $31.75-$32.55, indicating an expected growth of 18-20% year-over-year [4] - The company experienced significant revenue growth in the second quarter, primarily from the U.S. Pharmaceutical segment, with increased prescription volumes and demand for specialty products and GLP-1 medications [5] - International segment revenues also grew year-over-year, driven by higher pharmaceutical distribution volumes in Canada [6] - The Medical-Surgical Solutions segment's growth was supported by increased volumes of specialty pharmaceuticals, including vaccines [7] - Recent strategic collaborations, such as Ontada's partnership with Datavant to enhance access to real-world data, and InspiroGene's selection by Vertex Pharmaceuticals to expand distribution options for CASGEVY, are expected to strengthen McKesson's market position [7][8] Potential Challenges - McKesson's Distribution Solutions segment faces challenges due to price fluctuations in generic pharmaceuticals, with ongoing weaker pricing trends that could impact overall performance [9]

McKesson Corporation's (MCK) dedicated business focused on supporting the commercialization of cell and gene therapies, InspiroGene, has been selected by Vertex Pharmaceuticals Incorporated (VRTX) to expand commercial distribution options for CASGEVY. InspiroGene will partner with Vertex to expand distribution options for CASGEVY. CASGEVY (exagamglogene autotemcel), the first CRISPR-based gene-editing therapy approved by the FDA, is indicated for the treatment of patients 12 years and above with sickle cell ...

Investors might want to bet on McKesson (MCK) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual inv ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about McKesson (MCK) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.McKesson currently has an average ...

McKesson (MCK) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Over the past month, shares of this prescription drug distributor have returned +20.3%, compared to the Zacks S&P 500 composite's +3% change. During this period, the Zacks Medical - Dental Supplies industry, which McKesson falls in, has gained 7%. The key question now is: What could be the stock's future direction? While m ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Gro ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MCK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any in ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13252 McKESSON CORPORATION (Exact name of registrant as specified in its charter) Delaware 94-3207296 (State or other ...

Core Insights - McKesson Corporation reported strong second-quarter fiscal 2025 results, with adjusted earnings per share (EPS) of $7.07, exceeding the Zacks Consensus Estimate of $6.89 by 2.6% and showing a year-over-year improvement of 13.5% [1] - Revenues reached $93.65 billion, surpassing the Zacks Consensus Estimate by 4.7% and reflecting a year-over-year increase of 21.3%, driven by growth in the Pharmaceutical segment, particularly specialty products and GLP-1 medications [2][12] Revenue Details - The U.S. Pharmaceutical segment generated revenues of $85.7 billion, up 23% year over year, primarily due to increased prescription volumes from specialty products and GLP-1 medications [4] - The International segment reported revenues of $3.7 billion, a 7% increase year over year, attributed to higher pharmaceutical distribution volumes in Canada [5] - The Medical-Surgical Solutions segment's revenues totaled $2.9 billion, up 4% year over year, driven by higher volumes of specialty pharmaceuticals [7] - The Prescription Technology Solutions segment achieved revenues of $1.3 billion, an 11% increase year over year, supported by growth in technology services and third-party logistics [8] Profitability Metrics - Gross profit for the quarter was $3.25 billion, a 5.8% increase year over year, representing 3.5% of net revenues, down nearly 50 basis points from the previous year [9] - Operating income was reported at $578 million, down 39.2% year over year, with an operating margin of 0.6%, a decline of almost 60 basis points [9] Financial Update - Cash and cash equivalents stood at $2.51 billion, up from $2.3 billion a year ago, with cumulative net cash provided by operating activities amounting to $720 million compared to a net cash used of $87 million in the prior year [10] Fiscal 2025 Guidance - McKesson raised its adjusted EPS guidance for fiscal 2025 to a range of $32.40-$33.00, reflecting an 18-20% growth from the prior year, with revenues expected to grow 15-17% [11] Market Performance - McKesson's shares rose 4.7% in after-hours trading following the earnings report, with an 18.8% increase year to date, outperforming the industry growth of 2.9% and the S&P 500 Index's gain of 24.7% [3]