McKesson (MCK) J.P. Morgan Healthcare Conference presentation summary

U.S. market opportunity

• U.S. pharmaceutical market 5-year CAGR was 4.2%; oncology market CAGR was 12.5% through November 2020.

• Access, affordability and adherence market projected 12.0% 3-year CAGR for 2020–2023; six biosimilar launches in 2020.

• Favorable trends included innovative therapies, shifting sites of care, an aging population, value-based care and healthcare digitization.

Market positions and capabilities

• Distributed one-third of prescription medicine in North America and facilitated 19B+ healthcare transactions, enabling over $5B in annual prescription savings.

• Served 250,000+ medical-surgical customers; ranked No. 1 in community oncology and key specialties, with 10,000+ physicians served daily through specialty distribution and GPO services.

• Served 500+ biopharma brands across more than 94% of therapeutic areas; operated 12,000+ owned and banner pharmacies in Europe and Canada.

• Partnered with the U.S. Government on Operation Warp Speed; statistics as of March 31, 2020.

Strategic priorities and growth

• Completed the Change Healthcare exit and formed a German wholesale JV with Walgreens Boots Alliance; FY20 adjusted operating profit grew across every segment.

• FY21 free cash flow guidance was $2.3B–$2.7B, supported by working capital efficiencies.

• Invested over $100M internally in oncology and biopharma services through Q2 FY21; launched Ontada and expanded Access for More Patients.

• Built oncology capabilities through distribution, provider networks, research, specialty pharmacy, radiation and medical oncology, and internally developed technology and insights.

• Launched Ontada in December 2020; 2,000+ oncology providers use iKnowMed EHR, with 1.2M+ patients treated annually in The US Oncology Network and 2M+ records available for research.

• Prescription Technology Solutions combines claims switching, copay programs, coverage approvals and hub services; processes 19B+ transactions annually and serves 500+ brands across over 94% of therapeutic areas.