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• Sysco for pharmaceuticals.
• The UPS or FedEx for medicine and medical supplies.

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• Pharmaceutical Distribution: Distributes prescription drugs and over-the-counter medications to pharmacies, hospitals, and other healthcare providers.
• Medical-Surgical Distribution: Supplies medical, surgical, and laboratory products to hospitals, physician offices, and other healthcare facilities.
• Specialty Pharmacy & Biopharma Services: Provides comprehensive services for specialty medications, including distribution, patient support, and commercialization support for manufacturers.
• Healthcare Technology Solutions: Offers software and IT solutions to pharmacies, hospitals, and other healthcare organizations to manage operations, patient care, and supply chains.

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McKesson Corporation (symbol: MCK) primarily sells to other companies within the healthcare industry. As a leading pharmaceutical distributor and provider of medical supplies and technology solutions, its major customers are large retail pharmacy chains, hospitals, and other healthcare providers.

Major customer companies include:

• CVS Health (symbol: CVS)
• Walgreens Boots Alliance (symbol: WBA)
• Walmart Inc. (symbol: WMT) - for its pharmacy operations

McKesson also serves a vast network of independent pharmacies, hospitals, health systems, clinics, and government healthcare programs, though specific individual names for these numerous entities are not typically disclosed.

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Brian Tyler, Chief Executive Officer

Brian Tyler has more than two decades of experience with McKesson, having joined the company in 1997. He has served in various leadership roles, including Chief Operations Officer, Chairman of the Management Board of McKesson Europe, and head of North American Pharmaceutical Distribution Services, Corporate Strategy and Business Development, U.S. Pharmaceutical, Medical-Surgical, and Specialty Care Solutions. Before joining McKesson, he spent three years as a senior associate in healthcare consulting at Integral, Inc. Tyler holds a Ph.D. and master's degree from the University of Chicago, Department of Economics.

Britt Vitalone, Executive Vice President & Chief Financial Officer

Britt Vitalone became Executive Vice President and Chief Financial Officer of McKesson in January 2018, having joined the company in 2006. His previous roles at McKesson include Senior Vice President & CFO of McKesson U.S. Pharmaceutical and Specialty Health, Senior Vice President of Corporate Finance and Mergers & Acquisitions (M&A) Finance, and Senior Vice President & CFO of McKesson Medical-Surgical. Prior to McKesson, he held financial leadership positions with companies such as GE Financial Assurance, CarMax, and Bausch & Lomb. He is a certified public accountant and earned his Bachelor of Science in Accounting from St. John Fisher University.

Nancy Avila, Executive Vice President & Chief Information and Technology Officer

Nancy Avila joined McKesson in 2020 and is responsible for leading the company's technology initiatives, cybersecurity, and overall technology strategy. Before her tenure at McKesson, she served as Chief Information Officer at Johnson Controls. She also held various roles with increasing responsibility during a 22-year career at Abbott, including VP and CIO of Global Business Services.

Rebecca McKillican, Chief Executive Officer, McKesson Canada

Rebecca McKillican was appointed CEO of McKesson Canada in 2020, having joined the company three years prior with its acquisition of Well.ca, where she served as CEO. Her background includes senior roles at the New York City-based private equity firm Kohlberg, Kravis & Roberts (KKR), where she focused on driving operational improvements across the firm's portfolio companies. She also worked as a strategic consultant with McKinsey & Company.

Lori Schechter, Executive Vice President, Chief Legal Officer & General Counsel

Lori Schechter serves as McKesson's Executive Vice President, Chief Legal Officer & General Counsel, overseeing the company's General Counsel Organization, which encompasses law, public affairs, compliance, brand, marketing & communications, and corporate secretarial. From 2012 to 2014, she was McKesson's associate general counsel. Prior to joining McKesson, she was a litigation partner at Morrison & Foerster, where she chaired the global litigation department for four years.

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The key risks to McKesson's business include ongoing legal and regulatory challenges, pressure on drug pricing and margin compression, and intense competition within the healthcare distribution market.

1. Legal and Regulatory Risks: McKesson faces significant and ongoing legal and regulatory scrutiny, particularly concerning its role in the distribution of controlled substances, such as opioids. The company has been involved in extensive litigation and has paid substantial settlements related to opioid distribution and allegations of misleading investors about generic drug pricing. Compliance with regulations like the Drug Supply Chain Security Act (DSCSA) also presents continuous challenges and potential liabilities. The healthcare industry is highly regulated, and evolving regulations, including those affecting drug pricing and reimbursement models (like the Inflation Reduction Act), increase compliance costs and expose McKesson to potential legal actions and reputational damage.
2. Pressure on Drug Pricing and Margin Compression: McKesson's revenue growth and profitability are significantly impacted by ongoing pressures on drug pricing. As a drug distributor, the company earns a percentage of a medication's list price. Consequently, efforts by pharmaceutical companies to curb price increases, often driven by government and public pressure, can directly threaten McKesson's sales growth and bottom line. The company has experienced declining gross margins for several years, a trend attributed to generic drug price deflation and the buying power of large retail accounts. Potential regulatory changes aimed at reducing healthcare costs further pose risks to McKesson's future profitability.
3. Competition and Industry Dynamics: The healthcare distribution market is highly competitive, dominated by a few major players, including McKesson, Cencora (formerly AmerisourceBergen), and Cardinal Health. This intense competition, coupled with industry consolidation, can lead to eroded profit margins and affect McKesson's ability to negotiate favorable terms with suppliers and customers. Operating in a low-margin wholesale business necessitates continuous innovation and efficiency improvements to maintain market position and overcome competitive pressures.

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Clear emerging threats to McKesson (MCK) include:

• The rise of direct-to-consumer and direct-from-manufacturer pharmaceutical models, exemplified by companies like Amazon Pharmacy and Mark Cuban Cost Plus Drug Company (MCCPDC). These entities aim to disrupt the traditional drug supply chain by offering prescription drugs directly to consumers or pharmacies at transparent, often lower, prices, bypassing established pharmaceutical wholesalers and pharmacy benefit managers. This model directly challenges McKesson's core business as a primary distributor to retail pharmacies and healthcare providers.

• The expansion of large-scale B2B e-commerce platforms, such as Amazon Business, into the healthcare sector. While McKesson has specialized distribution networks for medical-surgical supplies, Amazon Business's extensive catalog, competitive pricing, and efficient logistics could increasingly attract healthcare facilities seeking to procure a wide range of medical-surgical products, potentially eroding McKesson's market share in its Medical-Surgical Solutions segment.

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McKesson Corporation (MCK) operates across several key segments, primarily focused on pharmaceutical and medical supply distribution, and healthcare technology solutions. Below are the addressable market sizes for its main products and services:

• U.S. Pharmaceutical Distribution: The U.S. pharmaceutical wholesaling industry is estimated to be approximately $694.7 billion in 2025. Another source indicates the U.S. pharmaceutical market size was valued at $634.32 billion in 2024 and is projected to reach $883.97 billion by 2030, growing at a CAGR of 5.72% from 2025 to 2030. Approximately 92% of U.S. prescription drugs are distributed through wholesalers.
• Medical-Surgical Solutions (U.S.): The U.S. medical supplies market size was estimated at $36.19 billion in 2024 and is predicted to reach approximately $56.37 billion by 2034, with a CAGR of 4.53% from 2025 to 2034. The Medical Supplies Wholesaling industry in the United States had a revenue of an estimated $326.4 billion in 2025. The U.S. medical devices market size was $188.68 billion in 2024 and is projected to reach $314.96 billion by 2032, exhibiting a CAGR of 6.8% from 2025 to 2032.
• Prescription Technology Solutions / Biopharma Services / Oncology Solutions (Global/U.S.):
  • Biopharma Services: The global biopharma service market size was approximately $22 billion in 2023 and is projected to reach around $50 billion by 2032. The global biopharmaceutical market was estimated at $422.5 billion in 2024 and is expected to grow to $921.5 billion by 2034 at a CAGR of 8.2%. North America held a 43% share of the global biopharmaceutical market in 2024.
  • Oncology Solutions: The global oncology market size is estimated at $225.05 billion in 2024 and is projected to reach around $600.97 billion by 2034, expanding at a CAGR of 11.54% between 2025 and 2034. The U.S. oncology market is valued at $81.34 billion in 2025 and is projected to reach $211.78 billion by 2034. The oncology segment accounted for a significant market share of 30.9% in the biopharmaceutical market in 2024. For oncology information systems, the market size stands at $3.22 billion in 2025 and is forecast to reach $4.85 billion by 2030 (global).
  • Specialty Pharmacy: U.S. prescription dispensing revenues from specialty pharmaceuticals reached $243 billion in 2023. The global specialty pharmaceuticals market was valued at $226.7 billion in 2024 and is expected to grow from $285.1 billion in 2025 to $2.37 trillion in 2034.
• International Pharmaceutical Distribution (Global/Europe/Canada): The global pharmaceutical wholesale and distribution market size is estimated at $844.2 billion in 2024 and is projected to grow at a CAGR of 8.7% during the forecast period 2024-2034. Another report states the global market size as $800,915.2 million in 2024. North America leads with about 40% share of pharmaceutical wholesale and distribution activity globally, followed by Europe (~30 %).

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McKesson Corporation (MCK) is strategically focused on several key drivers to fuel its revenue growth over the next two to three years.

1. Expansion in Oncology, Multispecialty, and Biopharma Services: McKesson is prioritizing the expansion of its oncology, multispecialty, and biopharma services platforms, which are identified as high-growth areas. The Oncology and Multispecialty segment is projected to achieve an annual growth rate of 13% to 16%. This growth is supported by increased distribution of oncology and multispecialty products, as well as contributions from recent acquisitions in this sector.
2. Strengthening North American Pharmaceutical Distribution: The company expects continued revenue growth from its North American Pharmaceutical segment. This is driven by increased prescription volumes from retail national account customers and the distribution of specialty products, including GLP-1 medications. This segment is forecasted to grow between 5% and 8% annually.
3. Growth in Prescription Technology Solutions: McKesson anticipates significant growth from its Prescription Technology Solutions segment. This area, which provides patient access and adherence tools for biopharma companies, is targeting an annual growth rate of 10% to 13%. Demand for access solutions and prior authorization services contributes to this growth.
4. Strategic Acquisitions and Portfolio Optimization: McKesson's strategy includes advancing portfolio optimization and benefiting from strategic acquisitions. Recent acquisitions, such as Prism Vision and Core Ventures within the Oncology & Multispecialty segment, are expected to contribute significantly to operating profit growth. The company is also undergoing a planned separation of its Medical-Surgical business as part of its portfolio optimization efforts.

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Share Repurchases

• McKesson returned $3.1 billion to shareholders through common stock repurchases in fiscal year 2025 (ending March 31, 2025).
• The Board of Directors approved an additional $4.0 billion for share repurchases in July 2024, bringing the total authorization to approximately $9.9 billion.
• The company anticipates approximately $2.5 billion in share repurchases for fiscal year 2026.

Share Issuance

• McKesson's annual basic shares outstanding for 2025 were approximately 127 million, reflecting a 4.35% decline from 2024, primarily due to share repurchase activities.
• In 2024, basic shares outstanding were approximately 133 million, a 5.6% decline from 2023, indicating a net reduction rather than issuance.
• For 2023, basic shares outstanding were approximately 141 million, a 7.35% decline from 2022, consistent with ongoing share buyback programs.

Outbound Investments

• In June 2025, McKesson completed the acquisition of a 70% controlling interest in Community Oncology Revitalization Enterprise Ventures, LLC (Core Ventures) for approximately $2.49 billion, aiming to advance community-based oncology care.
• On April 2, 2025, McKesson completed the acquisition of an 80% controlling interest in PRISM Vision Holdings, LLC, an ophthalmology and retina management services provider, in an $850 million deal.
• In May 2025, McKesson announced its intent to separate its Medical-Surgical Solutions segment into an independent company to focus capital deployment on higher growth, higher margin opportunities in Oncology and Biopharma Solutions.

Capital Expenditures

• McKesson invested $859 million in capital expenditures during fiscal year 2025.
• For the latest twelve months ending June 30, 2025, capital expenditures totaled $542 million.
• Capital expenditures are focused on strengthening North American Pharmaceutical distribution, modernizing the portfolio, and expanding oncology and biopharma services platforms, including investments in healthcare data platforms like Compile.