McKesson Corporation


SKU: MCK Category:


This is our first report on leading U.S. healthcare distributor, McKesson. The company delivered a mixed quarterly result with revenues of $70.2 billion falling short of the Wall Street consensus. The company did manage an earnings beat. The management continued its efforts towards improving its competitive edge in cancer and biopharma services through internal investment and acquisition. They have sustainable core distribution assets in the medical-surgical area and pharmaceutical distribution. The Medical-Surgical business has achieved market-leading positions in the primary and extended care markets through years of deliberate investment and expansion. McKesson is also extending its services to additional channels like the government, consumer, and direct-to-home sectors in response to the requirements of the patients. Besides, it concentrates on internal business process optimization. In Q2, the team acquired Rx Savings Solutions and observed notable improvements in the cost-effectiveness and adherence of their members’ or employees’ medicines, as well as notable cost reductions at the corporate level. Furthermore, the Prescription Technology Solutions business has performed well over the past year and is investing in personnel to support the expansion. Overall, we initiate coverage on the stock of McKesson with a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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