Sector: Health Care | Focus: Health Care Distributors
HQ: Irving, Texas
Financial Risks
McKesson faces significant risks from opioid-related litigation, with potential for substantial payouts exceeding $6.4 billion. The company's customer, Rite Aid's bankruptcy, created a provision for bad debts, and ongoing legal proceedings, including those involving the TCPA, False Claims Act, and government subpoenas, pose further financial uncertainty. Uncertainties in global capital and credit markets could also impact liquidity and borrowing costs.
Financial Upside
McKesson saw revenue increases in the U.S. Pharmaceutical, RxTS, Medical-Surgical, and International segments, driven by higher volumes and specialty pharmaceutical growth. Antitrust settlements generated gains, and a recapitalization event led to a $100 million gain. Share repurchases and dividend increases returned capital to shareholders. The acquisition of Core Ventures, while subject to regulatory approval, presents potential future growth.