On this page of StockholderLetter.com we present the latest annual shareholder letter from MCKESSON CORP — ticker symbol MCK. Reading current and past MCK letters to shareholders can bring important insights into the investment thesis.

 •  6/21/2024 Letter Continued (Full PDF)
 •  6/9/2023 MCK Stockholder Letter
 •  More "Drugs & Pharmaceuticals" Category Stockholder Letters
 •  MCK Benford's Law Stock Score = 92

MCK Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
Fiscal year ending March 31

At McKesson,
we are about Advancing
Health Outcomes for All  
40M+
pharmaceutical
and medical
supply deliveries
annually
Technology
Differentiation
Connected to payers
representing 94% of U.S.
prescription volume
Access to research
data from >2.4M patient
records including >85
oncology indications
Strength in Distribution
99% pharmaceutical order accuracy
in North America
285,000+ customers served with
medical-surgical products
Superior Specialty Assets
1.4+ million patients annually
treated by The US Oncology
Network physicians
+1,000 clinical trials
actively enrolling
Leading
distributor
in oncology
and specialty
therapies
Biopharma Services
Network of
950,000
providers and over
50,000 pharmacies
More than 650 biopharma
brands served
Increased value to biopharma
and enabled >$8.8B in
prescription savings
Supported
95%
of therapeutic
areas

To our valued shareholders:
McKesson continued its momentum through fiscal year 2024 (FY24), strengthening and
growing our businesses, while serving as a trusted partner to those who depend on us.
As we look back on the year, we delivered strong financial results and continued to
demonstrate our leading role as a diversified healthcare services company. In FY24, our
revenue grew 12% to $309 billion, earnings per diluted share from continuing operations was
$22.39, and adjusted earnings per diluted share increased 6% compared to the prior year,
marking growth across the enterprise that is supported by our differentiated portfolio of
assets. We are confident in our ability to deliver continued business progress and generate
shareholder return.
McKesson Strategy
Underpinning our financial performance is our continued focus on our enterprise strategy,
which guides our daily efforts and propels our company forward. I am pleased to share a more
detailed view of our business progress as we continued to execute against each of our four
strategic priorities:
1 | Focus on People and Culture
At McKesson, we aspire to be the best place to work in healthcare. In FY24, we continued
to advance our employee value proposition, the future of health starts with you, through
numerous enhancements to the employee experience. For example, we invested in a
one-time spot bonus for approximately 17,000 employees generally not eligible for
other management incentives. We also launched a new, centralized Human Resources
(HR) portal and expanded capabilities for our virtual HR chatbot to simplify processes,
empower employees and increase satisfaction. To further our commitment to growing
talent at all levels of the organization, we offered a variety of leadership and development
programs and online learning tools, resulting in new career opportunities for more than
3,500 employees.

2 | Drive Sustainable Core Growth
In FY24, we made continued progress deepening the value of our core
distribution assets. We executed several important customer agreements
and contract renewals and continued to modernize our distribution network
to support the growing needs of our customers. We deployed a suite of new
programs and technology enhancements to improve quality and productivity
across our facilities, including the opening of two new distribution centers
in the U.S. and continued the modernization of our distribution network in
Canada. We also helped millions of patients through our contact center
operations process billions of prescription transactions. In response to
widespread drug shortages, we worked to optimize inventory levels, secured
backup product alternatives and leveraged key partnerships to execute
best-in-class generics sourcing strategies to help mitigate supply risk and
enhance the value that we provide for our customers and their patients.
3 | Expand Oncology and Biopharma Platforms
Building on the strength of our core businesses, we made significant
progress advancing our strategic growth priorities in the areas of oncology
and biopharma services. In oncology, we supported physicians providing
care to 1.4 million cancer patients through The US Oncology Network (The
Network). In FY24, The Network experienced record growth with the addition
of several new practices, expansion into four new states and for the first time,
exceeded over 2,550 providers. Our impact now extends to over 600 sites
of care across 31 states. In our efforts to advance the adoption of precision
medicine, Ontada, our oncology insights business, integrated the biomarker
testing guide and real-time genomics results into iKnowMed, our electronic
health record designed for oncology, enabling providers to rapidly diagnose
and treat patients through personalized medicine. We also rolled out
Genospace clinical trial matching capabilities at the practices in The Network.
4 | Evolve and Grow the Portfolio
With our sights set on the future, we see immense opportunity to continue to
leverage data and technology to modernize our business, unlock efficiencies
and drive growth across our company. In FY24, we invested in capabilities in
advanced analytics, artificial intelligence (AI), automation, and foundational
data and governance. Our investments in technology generated over
$270 million in customer savings. For example, we made enhancements to
McKesson Connect, which serves as our single largest point of customer
interaction, to further improve the e-commerce experience. In January, we
acquired Compile, a healthcare data platform that aggregates and integrates
data from across the U.S. healthcare system to characterize providers and
their patient panels. We expect this acquisition to provide a centralized data
platform for McKesson and accelerate our capabilities in commercializing
data and providing insights to biopharma customers.

Advancing Health Outcomes for All  
Beyond our numerous business achievements, many of my proudest
moments from the year were anchored in how we live our purpose,
Advancing Health Outcomes for All  . One example of this includes our
launch of a pilot initiative aimed at advancing health equity in underserved
communities. Avondale, Ohio was selected as the first activation site for the
opening of a new independent pharmacy to support an urban area where
residents lacked access to a community pharmacy and essential healthcare
services. Another core example is our recent actions and advocacy efforts to
address drug shortages. In February, McKesson testified before the United
States House Committee on Ways and Means to educate policymakers
on supply chain dynamics and provide policy recommendations. Teams
from across the business collaborated to prepare for such an important
opportunity, helping to elevate our work to protect patients    access to the
medications they need.
As we close another successful year for McKesson, I am confident that we
have positioned our company to embrace whatever shifts may occur in our
industry and deliver greater value for everyone we serve. Thanks to the hard
work and dedication of our 51,000-plus employees, I know we will never cease
to find new ways to drive a positive and lasting impact as one Team McKesson.
I am also grateful to you     our shareholders     for your trust and confidence
in McKesson, along with the continued support from our Board of Directors
who help guide our future success. I look forward to reaching new heights
together in this next year, as we work to drive long-term growth and achieve
our purpose of Advancing Health Outcomes for All  .
Brian Tyler
Chief Executive Officer, McKesson



 6/21/2024 Letter Continued (Full PDF)