One package, one patient, one moment at a time- we delivered
Delivered 1/3 of all prescription medicines in North America
Delivered medical-surgical supplies and services to 275,000+ customers
>10,500 owned and banner pharmacies across Canada and Europe
Superior Specialty Assets
US Oncology Research has played a role in
100+ FDA‑approved cancer therapies
McKesson supported over 14,000 specialty physicians through distribution and GPO services
#1 distributor in community oncology and key specialties
More than 500 biopharma brands served
Increased value to biopharma and enabled >$5B in prescription savings
Supported over 94% of therapeutic areas
19B+ annual pharmacy transactions processed through RelayHealth
Connected to payers representing
94% of U.S. prescription volume
Network of 750,000+ providers and over 50,000 pharmacies
To our valued shareholders:
Looking back on a year like no other in our history, it's not the hours or days that we'll remember, but the moments thatmattered-the theme of our Fiscal Year 2021 (FY21) Annual Report. We came together as one team to deliver against our business and financial commitments, embrace new ways of working to support
each other, our customers and the healthcare industry, advance our strategies and invest in our future. FY21 proved that we can work toward our long-term goals while addressing short-termneeds-even in moments of crisis.
Last year, I wrote my annual letter to you at the very onset of COVID-19. Since then, McKesson has played a front and center role to help end the pandemic-working in partnership with our customers and interacting with regulatory authorities and other leading companies to bring personal protective equipment, medications and essential supplies to healthcare facilities and first responders; leveraging our lab capabilities to ramp up the distribution of COVID-19 tests as they came to market; and most recently, having the honor of serving as the centralized distributor of COVID-19 vaccines and the ancillary kits needed to administer them. Through April, we've successfully distributed over 150 million Moderna and Johnson & Johnson COVID-19 vaccines and have assembled enough kits to support the administration of more than 550 million doses of all vaccine types. Even now, we continue to advance our global efforts as we help to vaccinate
the public through our Health Mart pharmacies in the U.S. and many of our international retail pharmacies across Canada and Europe. And we stand ready to support our governments with longer-term recovery efforts.
Our employees continue to be the engine of our success. Despite many demands competing for their attention, our employees continued to show up every day and represent the very best of our values and behaviors. Due to their unwavering commitment and engagement, we were able to navigate through an unprecedented time
in healthcare while advancing our enterprise strategies and making great strides to enhance our culture, further our commitment to diversity and inclusion across our organization and become the best place to work in healthcare. This relentless focus will continue to drive our performance in the year ahead as we respond quickly to the changing demands of our customers and all those who depend on us and advocate for important social changes that will benefit our company, our communities and our global society.
billion in revenue
improvement on adjusted earnings
total shareholder return
We delivered consolidated operating profit and adjusted earnings per diluted share growth, including growth across nearly all our businesses. We generated revenues of $238B and adjusted earnings per diluted share was up 15% compared to the prior year. This strong performance allowed us to deliver meaningful results for investors, with a total shareholder return of 48%. We also returned $1B in cash to shareholders as we continue to work to improve our five-year shareholder return performance.
Our U.S. Pharmaceutical segment grew revenues 4% to $189.3B and adjusted operating profit (AOP) grew for the second consecutive year, improving 3% versus the prior year. Our priority in this segment is to deliver the world'shighest-qualitysupply chain to our customers and manufacturing partners, leveraging differentiated assets in the areas of specialty and oncology.
Our focus on cost and working capital efficiencies underpins this progress and helps fuel investments for growth across the company.
Prescription Technology Solutions grew revenues despite market prescription volume levels lower thanpre-COVID-19levels throughout the entire fiscal year. Revenues were $2.9B, up 7%, and AOP was flat to FY20. We're continuing to invest in innovation in this segment, and despite this year's challenges, we've been very successful in adding new brands to our platforms.
Last year, I shared with you that we had launched Access for More Patients (AMP), which helps patients with real-time benefit checks and electronic prior authorizations. Not only was this new product profitable in FY21, but, more importantly, it helps patients by reducing the wait time between when
a medication is first prescribed and when patients start therapy by up to 50%. AMP is a core example of our investment in innovation that is now contributing to profit growth.
Medical-Surgical Solutions grew revenues 22% to $10.1B, and AOP 19%. In FY21,Medical-SurgicalSolutions played a central role in providing supplies to our primary and extended care customers at a critical time of need. Demand within this segment was volatile throughout the fiscal year
for products such as PPE and COVID-19 tests, and our procurement teams worked diligently to find the supplies our customers needed to treat their patients at a time when demand was high and pricing was volatile. Despite fewer patient medical visits and elective procedures in FY21, I'm proud of the way the business responded to the needs of our customers, and I am confident that as patients return to consume healthcare and see their community-based providers, our core business is positioned well for growth heading into Fiscal Year 2022 (FY22).
Our International segment revenues were $36.0B, down 6% on a reported basis. The year-over-year decline was driven by the contribution of McKesson's German wholesale business to a joint venture with Walgreens Boots Alliance. AOP increased 5% on a reported basis, driven by solid execution, efficiencies through utilization of shared services, and continued expense controls and management despite lower foot traffic in many of our retail pharmacies across Europe and Canada, where the pandemic still lags the recovery we're seeing in the U.S. Over the past several years, we've taken deliberate actions to address our cost structure and evolve our retail footprint in these markets, and we saw benefits from those actions this fiscal year. We are also very disciplined in how we operate these businesses, as evidenced by our thoughtful exit of unprofitable customers at the onset of the fiscal year in our Canadian business.
Executing our McKesson Strategy
Two years ago, we introduced a refreshed McKesson strategy. Since this time, we have made great progress in advancing our growth strategy as defined by our execution against our five priorities that guide our decision making and investments across the enterprise.
1Building an integrated Oncology Services business
We continue to focus on delivering innovative solutions in areas like oncology where there is critical need and we have deep expertise. In FY21, we made great progress on this front, launching Ontada, our new insights-driven oncology company. Still in its infancy, Ontada has already reached some impressive milestones, including the formation of a strategic alliance with Amgen to improve cancer care in the community oncology setting, and establishing MYLUNG, a large-scale,real-world research study (with The US Oncology Network and other scientific institutions) to improve treatment for non-small cell lung cancer. In addition, we were pleased to add more practices and over 100 providers to The US Oncology Network in FY21. Today, through The US Oncology Network and our nonaffiliated provider business, we're connected to over 14,000 specialty physicians. And our oncology technology platform has supported millions of patient journeys, providing us access
to real-world outcomes, data and research.
2Expanding our Biopharma Services
Similarly, we also continue to expand the services and support we provide to the biopharma industry to improve access, affordability and, ultimately, drive better outcomes for patients. In FY21, we brought together our RelayHealth Pharmacy, CoverMyMeds and RxCrossroads businesses as Prescription Technology Solutions. Together, these businesses are focused on innovating and automating the ways in which biopharma connects with patients, pharmacies and providers. In FY21, our access solutions helped over 50 million patients start therapies after their original prescription was
denied coverage, and our affordability solutions helped patients save over $5B in out-of-pocket prescription costs. Ultimately, our solutions help patients begin therapies faster and stay on those therapies longer. This value is reflected by the over 500 biopharma brands we support today, covering nearly every therapeutic area.
3Strengthening our core business
We continue to strengthen our core businesses to enable strong cash flow generation for innovation and future investments. At McKesson, this means driving operational excellence and efficiency while making selective investments. This allows us to continue providing the highest level of service and support to our customers while funding our long-term growth strategy.
In FY21, we invested in our core across the entire organization including investments in our U.S. Pharmaceutical segment and our International segment. For example, through a partnership with Vanderbilt Health Rx Solutions, we expanded our integrated pharmacy services for specialty clinics to help them address unique challenges and develop sustainable programs. In Canada, in alignment with investments to expand capacity in our distribution network and create the Supply Chain of the Future, we signed a Letter of Agreement with Walmart to be their distribution partner across the country. And in Europe, online sales nearly doubled after enhancing our e-commerce offerings to support a more digital and consumer-centric healthcare experience.
McKesson Corporation published this content on 08 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2021 20:34:04 UTC.