McKesson Realigns Organizational Structure to Better Serve Customers and Patients While Optimizing Growth
July 01 2020 - 4:10PM
Business Wire
McKesson Corporation (NYSE:MCK) today announces changes to its
reportable business structure. The Company has revised its
reportable segments commencing in the second quarter of fiscal
2021.
These moves reflect the Company’s continued focus on delivering
new and innovative solutions to respond to the evolving needs of
the healthcare industry, customers and patients.
“McKesson has had a long history of leadership in the healthcare
industry by advancing our business to meet the changing needs of
our customers, providers, biopharma partners and the patients we
collectively serve,” said Brian Tyler, chief executive officer,
McKesson. “We are in the midst of a dynamic healthcare environment
with ongoing shifts in technology, reimbursement, policy and
patient centricity. This new structure positions McKesson to better
meet our customers’ needs by driving efficiencies, enhancing
operations and delivering new solutions that are directly focused
on solving their biggest challenges. This reportable structure,
which will create a more streamlined organization, will also enable
new opportunities and increased innovation that will strategically
position our business for future growth.”
McKesson will have four reportable segments. The new reportable
segments are:
U.S. Pharmaceutical and Specialty Solutions (USPSS) will become
U.S. Pharmaceutical (USP), led by Kirk Kaminsky, president,
and will continue to focus on best-in-class wholesale drug
distribution and value-added technology solutions for retail
pharmacies, health systems, payers and community providers. USP
will also continue to lead the market in cancer care transformation
through our comprehensive solutions offered through The US Oncology
Network, US Oncology Research, McKesson Data Evidence and Insights
and Biologics by McKesson specialty pharmacy.
Prescription Technology Solutions (RxTS) is a new
reportable segment that brings together RelayHealth, CoverMyMeds
and RxCrossroads by McKesson to serve our biopharma and life
sciences partners and patients. This segment, led by Nathan Mott,
president, will work across the healthcare delivery system to
connect pharmacies, providers, payers and biopharma for
next-generation patient access and adherence solutions.
International is a newly established reportable segment
that combines McKesson Canada and McKesson Europe. Bringing
together non-U.S.-based drug distribution services, specialty
pharmacy, retail and infusion care services, McKesson’s
International segment will focus on enabling and accelerating the
delivery of affordable, quality healthcare solutions. Together,
these business units are positioned to further leverage the
Company’s scale and reach to drive value across key differentiators
like the Company’s owned retail pharmacy assets. Kevin Kettler
remains CEO and chairman of the management board, McKesson Europe,
and will take on the added responsibility of leading McKesson’s
International segment. Domenic Pilla remains CEO, McKesson
Canada.
Medical-Surgical Solutions distributes medical-surgical
supplies and provides logistics and other services to healthcare
providers in the United States. This segment, led by Stanton
McComb, president, is unaffected by the realignment.
Note: Business activities previously reported in Other will be
included in the newly created reportable segments, excluding the
Company’s investment in the Change Healthcare joint venture, which
was separated from the Company in the fourth quarter of 2020.
McKesson expects to transition to financial reporting under the
new four-segment structure for periods commencing after the first
quarter of fiscal 2021.
Cautionary Statements
This press release contains information about the Company’s
plans that may constitute “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Those statements
involve risks and uncertainties that could cause actual results to
differ materially from those in those statements. The reader should
not place undue reliance on forward-looking statements, which speak
only as of the date they are first made. Except to the extent
required by law, the Company undertakes no obligation to publicly
update forward-looking statements. It is not possible to identify
all such risks and uncertainties. We encourage investors to read
the important risk factors described in the Risk Factors section of
the Company’s Form 10-K and Form 10-Q reports filed with the
Securities and Exchange Commission. These risk factors include, but
are not limited to: we experience costly and disruptive legal
disputes; we might record significant charges from impairment to
goodwill, intangibles and other assets or investments; we may be
unsuccessful in retail pharmacy profitability; we might be harmed
by large customer purchase reductions, payment defaults or contract
non-renewal; we might be adversely impacted by healthcare reform
such as changes in pricing and reimbursement models; we might be
adversely impacted by an economic slowdown or recession; disruption
in capital and credit markets might impede our access to credit,
increase our borrowing costs and impair the financial soundness of
our customers and suppliers; we might be adversely impacted by
events outside of our control, such as widespread public health
issues (including the COVID-19 pandemic), natural disasters,
political events and other catastrophic events.
About McKesson Corporation
McKesson Corporation is a global leader in healthcare supply
chain management solutions, retail pharmacy, community oncology and
specialty care, and healthcare information technology. McKesson
partners with pharmaceutical manufacturers, providers, pharmacies,
governments and other organizations in healthcare to help provide
the right medicines, medical products and healthcare services to
the right patients at the right time, safely and cost-effectively.
United by our ICARE shared principles, our employees work every day
to innovate and deliver opportunities that make our customers and
partners more successful — all for the better health of patients.
McKesson has been named the “Most Admired Company” in the
healthcare wholesaler category by FORTUNE, a “Best Place to Work”
by the Human Rights Campaign Foundation, and a top
military-friendly company by Military Friendly. For more
information, visit www.mckesson.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200701005792/en/
Holly Weiss, 972-969-9174 (Investors) Holly.Weiss@McKesson.com
David Matthews, 214-952-0833 (Media)
David.Matthews@McKesson.com
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