McKesson Corporation Wells Fargo 21st Annual Healthcare Conference

Good morning, everyone. Thank you for being here. We appreciate your support and interest in McKesson. We're excited to share a little bit about our strategy and recent performance. It's great to be on the stage for the first time with Kenny, who will share a little bit about our financial discipline and the way we think about growth and investment in the company. Appreciate your time this morning.

Yeah related. Sure. Look, we're really excited about this.

About seven years ago, we stepped back and rethought the enterprise strategy for McKesson. We oriented that strategy around a few pillars. People, culture, and talent would be in the first one, reinvigorating the growth in the core North American supply chain businesses. Then thinking about the portfolio, then focusing our growth and our capital allocation around two areas that we think both represent long-term, good growth, organic growth opportunities for the company, and places where we had differentiated capabilities. Those two markets were oncology and biopharma services. When we look at Precision for Medicine, it has two primary businesses. One aligned very well to our oncology growth strategy, and one aligned really tightly to our biopharma commercialization business.

Yeah. This acquisition for us is very close adjacencies to both of our growth strategies, which we're really, really excited about.

It brings us new capabilities.

Yeah in clinical trials, particularly leading clinical trials oriented around biomarkers, and that complements our existing Sarah Cannon assets, Ontada assets, and our US Oncology Network very well.

We just view this as a natural next extension of the assets that we've already built. On the commercialization side, takes us into some new markets like payer strategies and helping think about market access for the biopharma companies. So it's a really great fit supporting both of our growth strategies.

I think one of the things that we're extremely proud of at McKesson is when we think about building platforms, it's really important that these platforms create assets with our portfolio that are complementary. Think about distribution before practice management, data and insights.

Yeah clinical trial services, as Brian just mentioned.

With PMG, this really fits that mold perfectly. Being able to Yeah have a one plus one equals three equation where we can tack on to Sarah Cannon, to your point, to Ontada, and really provide incremental value for our biopharma partners around drug innovation, clinical services, commercialization, as Brian mentioned, and at the end, access to patients as well, in particular, the community setting.

Sure. Yeah, look, I would be happy to. In McKesson today and through our Sarah Cannon joint venture, we have got site management operations. But really, and some maybe a little bit of CRO-light capabilities and assets, but PMG brings a true CRO capability, which we think complements that site management operation very, very well. What we really liked about it, though, is that it is really focused on oncology, which is obviously a real strength for us, and we have a lot of unique assets in the oncology space. And then, rare disease, immunology, cell and gene therapy. These are areas that we have made bets in McKesson as well. We have a cell and gene operation that we call InspiroGene. So it is not broad, but it is global. It does give us capabilities in what we view as the most exciting, highest growth areas in the CRO segment.

But if it was not for that focus on an area of strength we already have- Yeah we probably would not have been interested.