McKesson Corporation
| File:McKesson logo.svg Logo of McKesson Corporation | |
| Company type | Public |
|---|---|
| Industry | Healthcare, Pharmaceutical distribution, Health IT solutions |
| Founded | 1828 in New York City, United States |
| Founder | Charles M. Olcott |
| Headquarters | Irving, Texas , United States |
Area served | North America |
Key people | Brian Tyler (CEO) |
| Products | Pharmaceutical distribution, Health IT solutions, Medical supplies, Healthcare management services |
| Revenue | US$308.9 billion (2024) |
Number of employees | 80,000+ (2024) |
| Website | www |
McKesson Corporation is a publicly traded American enterprise focused on pharmaceutical distribution, health IT solutions, medical supply provision, and healthcare management services. It distributes nearly one-third of all medications used across North America and employs a workforce exceeding 80,000 individuals. Reporting revenues of $308.9 billion in 2024, McKesson stands as the ninth-highest revenue-generating company in the U.S. and holds the position of the largest healthcare firm nationally. The company’s main office is located in Irving, Texas. McKesson is publicly listed on the New York Stock Exchange with the ticker symbol "MCK" and is included in the S&P 500 index.
The organization’s operational strategy relies on an extensive healthcare supply network combined with early integration of technologies such as barcode scanning, automated pharmacy robotics, and RFID systems to optimize distribution processes. Its subsidiaries encompass entities like Health Mart and Uniprix. Despite its significant market presence and industry stature, McKesson has encountered legal scrutiny concerning its involvement in the opioid crisis within the United States.
Throughout the COVID-19 pandemic, McKesson served a vital function as the centralized distributor for the U.S. government, managing hundreds of millions of vaccine doses along with associated supplies to support nationwide immunization campaigns. The company’s strategic direction and operational capacity have been instrumental in driving growth and maintaining a competitive edge within the healthcare sector.
19th century
Established in 1828 in New York City by Charles M. Olcott, McKesson began as an importer and wholesaler specializing in botanical medicines. The business was initially renamed Olcott, McKesson & Co. before adopting the name John McKesson in 1833. Following Olcott’s passing in 1853, Daniel Robbins—an early influential partner—joined, prompting the rebranding to McKesson & Robbins.
20th century
The firm rebounded from the infamous McKesson and Robbins scandal, which was exposed under CEO Phillip Musica, marking a significant turning point that led to reforms in American auditing practices and securities law after 1938.
In 1967, Foremost Dairies—a company founded by James Cash Penney and based in San Francisco since 1954—completed a hostile takeover of McKesson & Robbins, creating Foremost-McKesson Inc. The dairy segment was divested in 1982, after which the corporation was renamed McKesson Corporation, retaining its headquarters in San Francisco.
In 1999, McKesson acquired HBO & Company (HBOC), a medical information systems provider, for $14.46 billion and operated under the name McKessonHBOC for two years. Subsequent accounting scandals at HBOC triggered a sharp decline in stock value and resulted in legal actions against several executives.
21st century
The company reverted back to the name McKesson in 2001. During the early 2000s, McKesson broadened its footprint in medical technology through acquisitions including Per Se Technologies and RelayHealth in 2006, followed by Practice Partner in 2007.
On January 6, 2006, McKesson completed the acquisition of NDCHealth Corporation. In 2010, it acquired US Oncology, Inc., a provider specializing in oncology and physician services, for $2.16 billion, integrating it into what became McKesson Specialty Health.
In 2012, McKesson resolved litigation regarding excessive pricing practices and Medicaid overbilling by agreeing to pay $190 million to federal authorities and $151 million to California alongside 28 additional states.
On June 24, 2013, Chairman and CEO John Hammergren received pension benefits totaling $159 million—the largest recorded for any executive at a publicly traded company.
The acquisition of Celesio was finalized in 2014, elevating McKesson into one of the world’s largest healthcare corporations with annual revenues surpassing $179 billion.
In June 2016, plans were announced to merge McKesson’s IT division with Change Healthcare.
During 2017, McKesson faced legal challenges connected to its supply of vecuronium bromide amid controversies surrounding capital punishment.
In November 2018, McKesson declared its decision to relocate headquarters from San Francisco to Irving, Texas, effective April 2019; concurrently, Brian Tyler was named CEO.
By February 2020, McKesson had divested its ownership stakes and board representation in Change Healthcare.
In February 2025, an agreement was signed for McKesson to acquire an 80% stake in PRISM Vision Holdings as part of advancing its specialty care portfolio.
Opioid crisis
In 2008, McKesson incurred $13 million in penalties due to neglecting to report substantial hydrocodone orders. By January 2017, the company consented to a $150 million civil fine for analogous violations of the Controlled Substances Act concerning opioid distribution. This agreement also mandated McKesson to halt all controlled substance sales from distribution centers located in Colorado, Florida, Ohio, and Michigan for multiple years.
In May 2020, Oklahoma’s Attorney General initiated legal action against McKesson along with Cardinal Health and AmerisourceBergen, accusing them of significantly fueling the state’s opioid epidemic. The lawsuits asserted that these distributors provided enough opioids to supply every adult in Bryan County with 144 hydrocodone pills.
By January 2022, McKesson and other prominent distributors, including Johnson & Johnson, reached a $26 billion settlement with most states engaged in opioid-related litigation. This deal prevented potential fines that could have amounted to as much as $95 billion if the lawsuits had proceeded through court trials.
COVID-19 pandemic
Amid the COVID-19 pandemic in August 2020, the CDC and HHS designated McKesson as the centralized distributor for COVID-19 vaccines and ancillary supply kits across the United States under Operation Warp Speed. The company was instrumental in distributing Moderna, Johnson & Johnson, and Pfizer–BioNTech vaccines along with associated supplies nationwide, while also contributing to international distribution initiatives.
Financial performance
For the fiscal year 2023, McKesson posted a net income of US$3.56 billion on revenues totaling US$276.711 billion. As of 2023, it held the position as the largest healthcare company within the U.S. and ranked ninth on the Fortune 500 list by total revenue.
| Year | Revenue (US$M) |
Net income (US$M) |
Total assets (US$M) |
Price per share (US$) |
Employees |
|---|---|---|---|---|---|
| 2005 | 79,096 | −157 | 18,775 | 36.41 | |
| 2006 | 86,983 | 751 | 20,961 | 44.00 | |
| 2007 | 92,977 | 913 | 23,943 | 51.66 | |
| 2008 | 101,703 | 990 | 24,603 | 45.79 | |
| 2009 | 106,632 | 823 | 25,267 | 43.23 | |
| 2010 | 108,702 | 1,263 | 28,189 | 57.52 | 32,500 |
| 2011 | 112,084 | 1,202 | 30,886 | 71.40 | 32,500 |
| 2012 | 122,321 | 1,403 | 33,093 | 80.91 | 36,400 |
| 2013 | 122,196 | 1,338 | 34,786 | 113.59 | 43,500 |
| 2014 | 137,392 | 1,263 | 51,759 | 173.29 | 42,800 |
| 2015 | 179,045 | 1,476 | 53,870 | 198.26 | 70,400 |
| 2016 | 190,884 | 2,258 | 56,523 | 156.90 | 68,000 |
| 2017 | 198,533 | 5,070 | 60,969 | 141.87 | 78,000 |
| 2018 | 208,357 | 67 | 60,381 | 132.29 | 78,000 |
| 2019 | 214,319 | 34 | 59,672 | 127.96 | 80,000 |
| 2020 | 231,051 | 900 | 61,247 | 148.34 | 80,000 |
| 2021 | 238,228 | −4,539 | 65,015 | 195.88 | 76,000 |
| 2022 | 263,966 | 1,114 | 63,298 | 325.94 | 75,000 |
| 2023 | 276,711 | 3,560 | 62,320 | 405.02 | 51,000 |
McKesson Provider Technologies
McKesson Provider Technologies represents the company’s software development division and supports half of U.S. health systems nationwide alongside one-fifth of physician practices and a quarter of home care organizations; it also serves over three-quarters of health systems with more than two hundred beds.
In a strategic move in 2005 to enhance diagnostic and workflow solutions capabilities through web-based cardiac imaging and information management technology solutions from Medcon Ltd., an Israeli firm was acquired.
Further expanding its global footprint in October of 2013 by purchasing a fifty percent share in Germany’s Celesio for $8.3 billion allowed McKesson to bolster its presence within pharmaceutical distribution markets.
McKesson Medical Supplies and Equipment
McKesson Medical-Surgical (MMS) offers an extensive selection of nationally recognized healthcare brands along with exclusive McKesson-manufactured products. Its digital platform caters to a diverse clientele including physician practices, surgical centers, home healthcare providers, durable medical equipment suppliers (DMEs), laboratories, and long-term care institutions.
In 2015, MMS established a new headquarters in Richmond, Virginia, underscoring its strategic direction and dedication to expanding its business operations.
Health Mart Pharmacy Franchise
Health Mart is a franchise network comprising over 4,000 independently operated pharmacies and functions as a wholly owned subsidiary of McKesson. The acquisition of FoxMeyer, the previous owner of Health Mart, in October 1996 allowed McKesson to broaden its retail pharmacy presence and enhance its competitive position within the pharmacy industry.
Former Divisions
Mosswood Wine Company
Between 1978 and 1987, McKesson managed Mosswood Wine Company before divesting it to concentrate on pharmaceutical ventures. This division was initiated and overseen by noted wine author Gerald Asher.
NDCHealth (RelayHealth)
Originally known as National Data Corporation (NDC), the company became NDCHealth Corp in 2001 following the separation of its payments segment, Global Payments, in 2000. In 2007, McKesson acquired NDCHealth through Per-Se Technologies and rebranded it as RelayHealth, thereby broadening its portfolio in healthcare information technology services.
McKesson Canada
Since acquiring Medis Health and Pharmaceutical Services from Provigo in 1991, McKesson Canada has operated as a wholly owned subsidiary. In 2002, it unified its operations under the McKesson Canada brand. The company’s divisions encompass McKesson Pharmaceutical, Automation, Specialty, Health Solutions, and Information Solutions.
McKesson significantly enhanced its retail pharmacy presence by purchasing Canadian chains IDA, Guardian Pharmacy, and The Medicine Shoppe from the Katz Group of Companies in 2012 for $920 million. Further expansion occurred in March 2016 with the acquisition of Rexall from Katz for $3 billion—a transaction finalized by December 2016 under the Investment Canada Act.
On April 12, 2017, McKesson Canada agreed to acquire 330 Uniprix pharmacies, boosting its market share within Quebec. Nevertheless, in May 2018, it shuttered 40 Rexall outlets across Ontario and Western Canada as part of a strategic operational realignment.
United Kingdom
Within the United Kingdom, McKesson operated under the name McKesson Information Solutions UK Ltd, delivering IT solutions tailored to the healthcare sector. Its offerings included clinical software applications alongside financial and procurement services. A key achievement was developing the Electronic Staff Record system for the National Health Service, which administers payroll for approximately 1.3 million employees—representing the largest single payroll IT system globally. Additionally, McKesson Shared Services managed payroll for more than 20 NHS Trusts covering over 100,000 personnel.
The UK headquarters were located in Warwick, supported by data centers situated in Newcastle upon Tyne and Brent Cross, with additional offices in Sheffield, Bangor, Glasgow, and Vauxhall, London. The company employed upwards of 500 staff members throughout the UK.
Following a 16% revenue drop during the 2012/13 fiscal year after acquiring a successful British operation in 2011, McKesson divested most of its UK healthcare software business to private equity firm Symphony Technology Group in 2014. Concurrently, it announced it would not pursue renewal of the Electronic Staff Record contract.
In April 2022, private equity firm Aurelius Group acquired McKesson UK for £477 million. Aurelius' holdings include prominent subsidiaries such as LloydsPharmacy and AAH Pharmaceuticals.
Australia and New Zealand
In 2010, Medibank Private Ltd. took over McKesson Asia-Pacific. McKesson ANZ, a wholly owned branch of McKesson Corporation, broadened its footprint in Australia and New Zealand by acquiring Emendo in November 2012. This subsidiary focuses on healthcare optimization software and services, primarily catering to the public sector. The majority of District Health Boards in New Zealand utilize McKesson’s Capacity Management solutions.
One of McKesson’s global Capacity Management research and development centers is located in Christchurch, New Zealand, where all advancements for McKesson Capacity Planner are developed. Across Australia and New Zealand, the company employs approximately 40 personnel engaged in management, R&D, sales, and customer support.
McKesson Capacity Planner, previously known as Emendo CapPlan, is implemented in more than 40 hospitals throughout Australia, New Zealand, the United Kingdom, Canada, and the United States. This tool predicts patient volumes to enhance resource distribution and uncover potential cost efficiencies within healthcare systems.
Germany
On November 2, 2020, Walgreens Boots Alliance (WBA) and McKesson finalized their joint venture merging their pharmaceutical distribution operations in Germany: Alliance Healthcare Deutschland (AHD) and GEHE Pharma Handel (GEHE). WBA holds a majority stake of 70%, while McKesson retains a 30% ownership share.