McKesson Corporation

What does McKesson do?
McKesson distributes pharmaceutical products, including brand-name drugs, generic drugs, and specialty medications, to pharmacies, hospitals, physician offices, and other healthcare providers across the United States and Canada. The company also operates the US Oncology Network, distributes medical-surgical supplies, and provides technology solutions to biopharma manufacturers through its Prescription Technology Solutions segment.

Is McKesson publicly traded?
Yes, McKesson Corporation trades on the New York Stock Exchange under ticker symbol MCK. The company has no controlling shareholder, with ownership distributed among institutional investors including Vanguard Group and BlackRock.

What is McKesson's annual revenue?
In fiscal year 2024 (ended March 31, 2024), McKesson reported revenue of approximately $308.9 billion, a 10% increase from the prior fiscal year. The U.S. Pharmaceutical segment accounted for approximately $275 billion of total revenue.

Who is McKesson's CEO?
Brian Tyler has served as Chief Executive Officer of McKesson since April 2019, succeeding John Hammergren. Tyler has led the company's strategic focus on oncology and biopharma services as higher-growth businesses within the healthcare distribution ecosystem.

When was McKesson founded?
McKesson was founded in 1833 by John McKesson and Charles Olcott in New York City as Olcott & McKesson, making it one of the oldest continuously operating companies in the United States.

What is McKesson's role in the opioid settlement?
McKesson, along with Cencora and Cardinal Health, reached a $21 billion settlement with U.S. states and local governments in 2022 to resolve claims that the three distributors failed to adequately monitor suspicious opioid orders. McKesson's share of the settlement is approximately $7.9 billion, to be paid over 18 years.

McKesson is one of the oldest continuously operating companies in the United States, tracing its origins to 1833 when John McKesson and Charles Olcott founded Olcott & McKesson in New York City as an importer and wholesaler of therapeutic drugs and chemicals. The company grew steadily through the 19th century, building one of the first comprehensive drug distribution networks in the United States.

In 1853, the company was renamed McKesson & Robbins following a partnership change. The company expanded nationally through the late 19th and early 20th centuries, establishing distribution centers across the country and building relationships with pharmacies, hospitals, and healthcare providers. McKesson became one of the largest pharmaceutical wholesalers in the United States by the mid-20th century.

The company went public in 1940, providing capital for continued expansion. Throughout the latter half of the 20th century, McKesson grew through acquisitions and organic expansion, diversifying into medical-surgical supplies, healthcare technology, and services alongside its core pharmaceutical distribution business.

In 1999, McKesson merged with HBO & Company (HBOC), a healthcare information technology company, in a transaction valued at approximately $14 billion. The merger created McKessonHBOC, intended to be a comprehensive healthcare services company combining distribution and technology. However, shortly after the merger closed, McKesson discovered that HBOC had been improperly recognizing revenue, leading to a massive accounting restatement and significant financial and legal consequences. Several HBOC executives were subsequently convicted of fraud. The company reverted to the McKesson name in 2001 and eventually divested most of its healthcare IT businesses.

Throughout the 2000s and 2010s, McKesson rebuilt its reputation and expanded its pharmaceutical distribution business through organic growth and acquisitions. The company acquired US Oncology in 2010 for approximately $2.16 billion, gaining a network of oncology practices and specialty pharmaceutical distribution capabilities that became a significant growth platform.

McKesson expanded internationally through the acquisition of Celesio AG, a German pharmaceutical distribution company, in 2014 for approximately $8.3 billion. Celesio provided McKesson with significant operations in Germany, the United Kingdom, and other European markets. However, McKesson subsequently divested its European operations, completing the sale of its European pharmaceutical distribution businesses to the PHOENIX Group in 2023 to focus on its North American core business.

Brian Tyler became CEO in April 2019, succeeding John Hammergren, who had led the company for nearly two decades. Tyler has led McKesson's strategic refocus on oncology and biopharma services as higher-growth, higher-margin businesses within the healthcare distribution ecosystem.

McKesson's most significant legal matter is its participation in the $21 billion opioid settlement reached in 2022. McKesson's share of approximately $7.9 billion is the largest of the three major distributors, reflecting its scale in pharmaceutical distribution. The settlement resolved claims that McKesson failed to adequately monitor and report suspicious orders of opioid medications, contributing to the opioid epidemic.

The 1999 HBOC accounting fraud, which occurred shortly after McKesson's acquisition of HBO & Company, resulted in significant financial losses for McKesson shareholders and criminal convictions for several HBOC executives. While McKesson was a victim of the fraud rather than a perpetrator, the episode damaged the company's reputation and resulted in substantial legal costs.