McKesson 2015 Annual Report Download - page 4

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largest pharmaceutical wholesalers and providers of logistics and services in the healthcare sector worldwide,
with purchasing scale that drives value for our customers and shareholders.
At the same time, McKesson and Celesio have much to offer each other beyond scale advantages. McKesson has
best-in-class operational practices for supply chain management that will help strengthen Celesio’s performance
and profitability. Celesio, in turn, offers deep experience in retail that will help McKesson provide even greater
value to our retail pharmacy partners in North America. With the addition of our Lloyd’s pharmacy brand in Eu-
rope, McKesson is now one of the largest pharmacy retailers in Europe.
We estimate annual synergies of $275–$325 million of our combined operations by the end of Fiscal 2019, and we
are well on track to achieve that goal through a combination of procurement and operational efficiencies.
Helping Our Retail Pharmacy Partners Thrive
We are a strong partner to our retail and independent pharmacy customers, and our business strategy is focused
on helping them thrive. We value our partnerships with independent pharmacies and are always looking for new
ways to deepen our relationships. In Fiscal 2015, we added more than 500 new Health Mart stores and increased
our presence in the Canadian market with the acquisition of Remedy, that nation’s fastest-growing independent
pharmacy network.
Enhancing Manufacturer Relationships
Our focus is on our customers and the patients they serve, but we simply could not be as successful as we are today
without the long-term and healthy relationships we have with our manufacturing partners. Our supplier partners
play a key role in our ongoing growth, and we work hard to add value to their business models. For example, in
the specialty market, we have taken advantage of opportunities to expand value-added services to manufacturers,
including offering multiple distribution channels, a distinctive go-to market approach and clinical trial access to
our network of oncology physicians.
Leading in Specialty
The specialty market continues to expand, and McKesson is proud to be a leader in the distribution of specialty
drugs to physicians and other healthcare providers throughout the U.S. In addition to distribution services, our
Specialty business supports our manufacturing partners with additional offerings, including comprehensive pro-
grams for clinical trial research and commercialization.
This business delivered excellent results with growth across its broad portfolio of solutions. In Fiscal 2015, we con-
tinued to add physicians to our US Oncology Network, one of the nation’s largest networks of integrated, commu-
nity-based oncology practices dedicated to advancing high-quality, evidence-based cancer care.
An important development in the coming year will be the emergence of biosimilars in the United States. McKes-
son is well positioned to support our customers and manufacturing partners as this new category is introduced in
the U.S. market.
Extending Medical-Surgical Market Leadership
In our Medical-Surgical business, we continued to make great progress on the integration of PSS World Medical. In
Fiscal 2015, our team did a tremendous amount of work to harmonize our distribution network, product portfolio
and general operations. We are pleased to have successfully increased our market share while expanding the sup-
port we provide to our Medical-Surgical customers.
Focusing on Innovation and Technology
Innovative technology is playing an increasingly important role in healthcare. The shift to value-based reimburse-
ment, combined with increasing consumerism and the proliferation of alternative, technology-enabled care-
delivery services, is reshaping the landscape for healthcare information technology. In response to these emerging
needs, our Technology Solutions businesses are focused on several areas we know are crucial to our customers’
future success: connectivity, imaging solutions, payer and financial solutions, and provider revenue and risk man-
agement. These are the areas where we are best positioned to help our customers and business partners navigate
the changing landscape of healthcare to emerge as stronger, more efficient organizations.