McKesson 2016 Annual Report Download - page 4

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Expanding Scale. Two years ago, we acquired Celesio, which gave us a strong foothold in Europe
and helped us drive significant global purchasing synergies. We advanced our position further
in fiscal 2016 with the announced acquisition of the pharmaceutical distribution division of UDG
Healthcare in Ireland and an agreement to acquire more than 200 pharmacies operated by Sainsbury’s
in the United Kingdom.
In the U.S., we successfully renewed a number of significant existing customer agreements while
winning major new accounts. For example, we expanded our distribution agreement with Albertsons,
assuming responsibility for the sourcing and distribution of generic and brand pharmaceuticals for
nearly 1,700 Albertsons in-store pharmacies across the company’s 33-state operating area. This
five-year partnership will allow Albertsons customers to benefit from McKesson’s proprietary
OneStop® Generics program and the efficiency of McKesson’s daily direct-to-store service model for
pharmaceutical products.
Retail Pharmacy. Retail pharmacy—including independents, retail banner and corporate-owned
stores—represents a key growth opportunity for McKesson. In fiscal 2016, we made significant progress
in expanding our retail presence in Europe through the growth of our European Pharmacy Network.
In Canada, we announced the acquisition of Rexall Health, which will significantly strengthen
McKesson’s position in the Canadian pharmaceutical supply chain. Through the planned acquisition
of Rexall, McKesson will acquire approximately 470 retail pharmacies, with strong concentrations
in two of Canada’s fastest-growing regions, Ontario and Western Canada.
Health Mart®, the U.S.’s fastest-growing independent pharmacy franchise, extended its tremendous
track record of growth during fiscal 2016, ending the year with more than 4,600 stores or approximately
19% growth over the prior year. The support and services offered by Health Mart help locally owned
Health Mart pharmacies gain access to preferred networks, bring more patients into their stores through
local marketing solutions, and offer new patient services that improve their bottom line while creating
more value for their patients.
Specialty Pharmaceuticals. Specialty drugs make up roughly one-third of today’s pharmaceutical
spending, and are expected to drive significant ongoing growth in the pharmaceutical market. Because
we see the clear opportunities for increased market leadership, we took several steps in fiscal 2016 to
expand our footprint in the specialty market. We made two significant acquisitions: Vantage
Oncology and Biologics. Vantage Oncology is a leading national provider of integrated oncology
and radiation services, and Biologics is an oncology pharmacy services company that offers specialty
pharmacy and patient support services specifically in the areas of oncology and other complex
therapeutic categories. Together, these acquisitions will significantly enhance McKesson Specialty
Health’s services to patients, providers, payers and manufacturers.
Innovating for a Healthier Future
McKesson has a long history of innovation within healthcare, dating back to 1833 when we created
the first national drug distribution system in the United States. At every step of our evolution, we
have always looked for opportunities to do things better, differently, so that we can increase the value
we bring to our customers.
Building the systems, infrastructure and tools that will power tomorrow’s healthcare industry remains
a high priority for the company. We accomplish that with both internal and external investments as well
as strategic partnerships.
As a founding member of the CommonWell Health Alliance, McKesson has worked closely with
industry stakeholders to help bring to life the U.S.’s first and only national network dedicated to the
safe and secure exchange of patient information across all care settings. CommonWell’s vision is to
allow patients and caregivers to access and share their health data, which we believe will empower
and engage healthcare consumers.
Your company ended the fiscal year in excellent shape,
poised for continued growth in fiscal 2017 and beyond.