McKesson (MCK) 7th Annual Evercore ISI HealthCONx Healthcare Conference summary

Strategic focus and business performance

• Emphasis on differentiated growth strategies in oncology and biopharma services, with ongoing investments in automation and AI to enhance efficiency and customer centricity.

• Achieved 21% revenue growth and 13% adjusted EPS growth in Q2, with $2.1B operating cash flow and $1.9B free cash flow for the first half of the fiscal year.

• Anticipates higher tax rate (23%-26%) in Q3, normalizing to 17%-19% for the full year.

• Continues to modernize the business and diversify assets, maintaining strong momentum into the second half of the year.

U.S. pharma and oncology platform

• U.S. pharma business benefits from customer diversification and onboarding of a new strategic partner, driving scale and efficiencies.

• Oncology platform includes over 2,750 providers, unified EMR, and expanded clinical trial management through a joint venture with Sarah Cannon Research Institute.

• Oncology-related revenue is about $35B, with higher growth and margin potential; patient accruals in clinical trials up 25% this year.

• Ongoing provider additions and acquisitions, such as Florida Cancer Center, support platform expansion and data capabilities.

Biosimilars and Med-Surg business

• Biosimilars offer more clinical choice, better patient costs, and generally higher margins than branded drugs, especially in oncology channels.

• Margin rates for biosimilars depend on the channel and level of services provided.

• Med-Surg business growth driven by following patient care into alternate settings and expanding private brand portfolio to over 5,000 products.

• Achieved 10% CAGR in adjusted operating profit over five years; long-term growth targets are periodically reviewed and increased.