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McKESSON CORPORATION
3
PART I
Item 1. Business
General
McKesson Corporation (“McKesson,” the “Company,” the “Registrant,” or “we” and other similar pronouns), is
a Fortune 18 corporation providing supply, information and care management products and services designed to
reduce costs and improve quality across the healthcare industry.
The Company’ s fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, all references in
this document to a particular year shall mean the Company’ s fiscal year.
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of
1934 (the “Exchange Act”), as amended, are available free of charge on our Web site (www.mckesson.com under
the “Investors – SEC Filings” caption) as soon as reasonably practicable after we electronically file such material
with, or furnish it to, the Securities and Exchange Commission (“SEC” or the “Commission”). The content on any
Web site referred to in this Annual Report on Form 10-K is not incorporated by reference into this report, unless
expressly noted otherwise.
Business Segments
We operate in two segments. The McKesson Distribution Solutions segment distributes ethical and proprietary
drugs, medical-surgical supplies and equipment, and health and beauty care products throughout North America.
This segment also provides specialty pharmaceutical solutions for biotech and pharmaceutical manufacturers, sells
pharmacy software and provides consulting, outsourcing and other services. This segment includes a 49% interest
in Nadro, S.A. de C.V., (“Nadro”) the leading pharmaceutical distributor in Mexico and a 39% interest in Parata
Systems, LLC (“Parata”), which sells automated pharmacy and supply management systems and services to retail
and institutional outpatient pharmacies.
The McKesson Technology Solutions segment delivers enterprise-wide clinical, patient care, financial, supply
chain, and strategic management software solutions, pharmacy automation for hospitals, as well as connectivity,
outsourcing and other services. Our Payor group of businesses, which includes our InterQual®, clinical auditing
and compliance and medical management software businesses and our care management programs, are also included
in this segment. The segment’ s customers include hospitals, physicians, homecare providers, retail pharmacies and
payors from North America, the United Kingdom, other European countries and Asia Pacific.
Net revenues for our segments for the last three years were as follows:
(Dollars in billions) 2008 2007 2006
Distribution Solutions $ 98.7 97% $ 90.7 98% $ 85.1 98%
Technology Solutions 3.0 3 2.3 2 1.9 2
Total $ 101.7 100% $ 93.0 100% $ 87.0 100%
Distribution Solutions
McKesson Distribution Solutions consists of the following businesses: McKesson U.S. Pharmaceutical,
McKesson Canada, McKesson Medical-Surgical, McKesson Retail Automation and McKesson Specialty
Distribution. We also own an approximate 49% interest in Nadro and an approximate 39% interest in Parata.
U.S. Pharmaceutical Distribution: This business supplies pharmaceuticals and other healthcare related
products to customers in three primary customer segments: 1) retail national accounts (including national and
regional chains, food/drug combinations, mail order pharmacies and mass merchandisers); 2) independent retail
pharmacies, and; 3) institutional healthcare providers (including hospitals, health systems, integrated delivery
networks, clinics and other acute-care facilities and long-term care providers).