McKesson 2012 Annual Report Download - page 10

McKESSON CORPORATION
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McKesson Canada: McKesson Canada, a wholly-owned subsidiary, is one of the largest pharmaceutical
distributors in Canada. McKesson Canada, through its network of 16 distribution centers, provides logistics and
distribution to more than 800 manufacturers – delivering their products to retail pharmacies, hospitals, long-term
care centers, clinics and institutions throughout Canada. Beyond pharmaceutical distribution, logistics and order
fulfillment, McKesson Canada has automated over 2,500 retail pharmacies and is also active in hospital automation
solutions, dispensing more than 100 million doses each year. In partnership with other McKesson businesses,
McKesson Canada provides a full range of services to Canadian manufacturers and healthcare providers,
contributing to the quality and safety of care for patients. On March 25, 2012, we acquired substantially all of the
assets of Drug Trading Company Limited, the independent banner business of the Katz Group Canada Inc. (“Katz
Group”), and Medicine Shoppe Canada Inc., the franchise business of the Katz Group. The acquisition of the assets
from the Drug Trading Company Limited consists of a marketing and purchasing arm of more than 850
independently owned pharmacies in Canada. The acquisition of Medicine Shoppe Canada Inc. consists of the
franchise business of providing services to more than 160 independent pharmacies in Canada.
Medical–Surgical Distribution: This business provides medical-surgical supply distribution, equipment,
logistics and other services to healthcare providers including physicians’ offices, surgery centers, extended care
facilities, homecare and occupational health sites through a network of 28 distribution centers within the U.S. This
business is a leading provider of supplies to the full range of alternate-site healthcare facilities, including physicians’
offices, clinics and surgery centers (primary care), long-term care, occupational health facilities and homecare sites
(extended care). Through a variety of technology products and services geared towards the supply chain, our
Medical-Surgical Distribution business is focused on helping its customers operate more efficiently while providing
one of the industry’s most extensive product offerings, including our own private label line. This business also
includes ZEE® Medical, one of the most extensive product offerings in the industry of first aid, safety and training
solutions, providing services to industrial and commercial customers. This business offers an extensive line of
products and services aimed at maximizing productivity and minimizing the liability and cost associated with
workplace illnesses and injuries.
McKesson Pharmacy Systems and Automation: This business supplies integrated pharmacy management
systems, automated dispensing systems and related services to retail, outpatient, central fill, specialty and mail order
pharmacies. Its primary offering is EnterpriseRx®, a Software as a Service (SaaS) pharmacy management system,
that allows large retail chain, health system, and retail independent pharmacies to meet demand for prescriptions
while maximizing profits and optimizing operations. We also own a 39% interest in Parata, which sells automated
pharmacy and supply management systems and services to retail and institutional pharmacies.
McKesson Specialty Health: This business provides solutions for oncology and other specialty practices
operating in communities across the country, as well as for pharmaceutical and biotech suppliers who manufacture
specialty drugs and vaccines. Through expertise in specialty drug distribution, commercialization, revenue cycle
and practice management and reimbursement support, McKesson Specialty Health allows the community patient
care delivery system and facilitates collaboration among community healthcare providers, drug manufacturers and
payers. We provide direct-to-physician specialty distribution services, ensuring supply chain safety and delivery of
specialty drugs in manufacturer recommended conditions. Third party logistics, or 3PL, are offered primarily for
vaccine distribution, including our exclusive distributor relationship in the Center for Disease Control and
Prevention’s (CDC) Vaccines for Children program. We also offer our industry leading Lynx® integrated
technologies, the iKnowMedSM Electronic Health record, and clinical and practice management tools, all of which
help community practices improve inventory management, practice workflow and reimbursement processes, as well
as deliver business efficiencies and clinical-decision support. McKesson Specialty Health works with manufacturers
across all phases of the product development and commercialization lifecycle, including clinical research, to
optimize delivery of complex medication to patients. Through custom distribution and safety programs, we help
support appropriate product utilization, as well as the development and management of Risk Evaluation Mitigation
Strategies (“REMS”), reimbursement, healthcare informatics and patient access programs, and to enable
manufacturers to deliver cost effective patient access to needed therapies. McKesson Specialty Health supports The
US Oncology Network and US Oncology Research. The US Oncology Network unites one of the largest network of
community oncologists in the United States, and through collaboration and shared purpose, provides the clinical,
research, technology and business resources to ensure the growth and vitality of these independent, community-
based oncology practices. US Oncology Research is one of the nation’s largest research networks, specializing in
Phase I – Phase IV oncology clinical trials.