In August, CDC selected McKesson to be the distributor of COVID-19 vaccines in the US as part of Operation Warp Speed.
CEO Brian S. Tyler has led the company well through the difficulties and opportunities of the pandemic. His commitment to strategy, innovation, and culture have McKesson going full speed ahead (MCK: NYSE).
Established in 1835 in New York, McKesson is a leading global healthcare company. It was ranked 8th on the Fortune 500 for 2020. Its head office moved from San Francisco to Dallas in 2019.
McKesson is a wholesale distributor of medicines and medical products. It handles one-third of all prescription drugs in the US. Its customers include Walmart and CVS.
McKesson also provides Health information systems, oncology services, specialist medical services, and owns retail pharmacies.
Brian S. Tyler became CEO of McKesson in April 2019. He had been President and COO since 1997.
He succeeded John Hammergren. Hammergren focused the company on healthcare and quadrupled revenues. But under his watch, the company also faced lawsuits from several states over the opioid crisis.
Among his previous roles at McKesson, Tyler was Executive VP of Corporate Strategy and Business Development. And this reflects one of his main strengths: strategic leadership since he has a Ph.D. in Economics from the University of Chicago.
Tyler will continue McKesson’s push into specialist treatments and technology services. He is a big believer in data analytics and using that to put the customer at the center.
“Technology and data and most importantly the intelligence that can flow from those things will revolutionize healthcare.”
McKesson offers information services across the pharma value chain. This includes systems for training, electronic prescription authorizations, and support services for pharma manufacturers. McKesson has a strategic advantage in providing future information services across the value chain.
“Together, these businesses help to connect pharmacies, providers, payers, and biopharma for next-generation patient access and adherence solutions.”
This is key given that McKesson faces competition from different players at different segments of the value chain.
Brian S. Tyler has also shown strong leadership with corporate culture. Elevating McKesson’s culture has been one of his key priorities since becoming CEO.
“Focus and simplification and speed are things that I’m very focused on and they’re not easy to do. But they all start, in my opinion by defining a culture.”
Early signs of success in his work on culture can be seen in McKesson’s success during the pandemic. McKesson has become a leader in COVID-19 testing and related medical supplies. But the crowning jewel is the selection to be part of Operation Warp Speed.
“The last four months has really been quite impressive to see how fast business can move.”
In his first year as CEO, revenue increased by 7.8 percent to $231.05bn (2020 FY – March ending). Through Q2 2021, revenue has reached $116.5bn, up 6 percent from the same period last year. Growth in American pharmaceuticals is driving the growth.
The share price has increased by 46.6 percent since Tyler took over.
The share price increased in early November with the strong Q2 2021 results. Since then, the MACD line has been above the signal line. But in the last three weeks, an evening star pattern points to a possible decline, which will test the first support level around $170 (see chart below).