McKesson (MCK) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic focus and portfolio evolution

• Emphasis on oncology, biopharma services, and North American distribution as core growth pillars, supported by disciplined portfolio optimization and capital allocation.

• Recent exits from Change Healthcare and European operations, with the medical business set for separation and a planned IPO in the second half of 2027.

• Segment reporting now aligned with strategy, enhancing transparency and focus on North American pharmaceutical, oncology, multispecialty, and prescription technology.

• Transformation of business segments from FY20 to FY26, with a focus on North American and specialty solutions.

• Strategic priorities include growing oncology, multispecialty, and biopharma platforms, strengthening North American distribution, and modernizing the portfolio.

Oncology and specialty growth

• Oncology network expanded with Florida Cancer Specialists and Core Ventures, supporting over 1.4 million patients and 3,300+ providers.

• Integration of new practices progressing smoothly, with year-one accretion on track and three-year accretion targets of $1.40-$1.60.

• Oncology market is large and growing, with over 2 million new US cancer diagnoses annually and 60% projected drug spend growth from 2025–2029.

• Community oncology market offers ~$80B addressable market in drug distribution and additional opportunities in practice management, commercial services, and clinical research.

• Retinology and ophthalmology identified as new specialty focus areas due to innovation and network effect potential.

Biopharma and prescription technology solutions

• Biopharma services platform built through acquisitions and integration, processing ~23B pharmacy transactions annually and supporting 100M+ patient access events.

• Prescription Technology Solutions segment leverages technology to reduce friction in patient access and adherence, with growth from expanding brand relationships and product innovation.

• Provided $10B+ in out-of-pocket savings and enabled access to medications for millions of patients in the past year.

• Specialty pharmaceuticals remain the highest growth area, supporting continued investment in related programs and services.

• Prior authorization and related services continue to see stable demand, with ongoing innovation to improve patient and provider experience.