McKesson Corporation (NYSE:MCK) Q2 2024 Earnings Call Transcript

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Elizabeth Anderson: Hi guys. Thanks so much for the question. I had two questions. One on the RxTS business, are you seeing any sort of spillover benefit from GLP-1? I’m thinking like either you know an organization that doesn’t use you, that does use you because they’ve heard about this with the GLP-1s or sort of a cross selling across your group of services within the segment? And then secondarily, on the medical side, one of your competitors on the outpatient side has seen some ordering impact because of sort of website and sort of a cyberattack. Has that provided any kind of material change in customer ordering within that segment in the last couple of weeks? Thank you very much.

Brian Tyler: So the first, I think your first question was as it relates to RxTS and this opening new avenues, I would just remind you RxTS is connected to 900,000 providers today and 50,000 plus pharmacies today. So we’ve had a long established relationship with them and I think we’ve been well known for quite a long time in that arena. So I don’t think that we’d see anything material there. And then your second question was as relates to a competitor ordering challenges, I’m not really not going to get into the issues a competitor might have. I don’t think — we’ve spent a little bit of time talking about the trends that we saw in the Medical-Surgical business and reviewed those trends and I think those stand for themselves.

Rachel Rodriguez: And we have time for one more question, please.

Operator: Certainly. That question will come from George Hill with Deutsche Bank. Please go ahead.

George Hill: Hey, guys, I appreciate you sneaking me and I’ll say, Brian and Britt, the oncology business has really been a standout over the last several years. I was wondering if there’s a chance that you guys might give us any kind of sense of the scope or scale of the business inside of the U.S. drug segment with any type of number around it? And then Britt as a quick follow up, I guess given the ongoing agreement with Rite Aid, can you tell…

Britt Vitalone: Looks like he dropped off.

Operator: Mr. Hill, please proceed. I think we lost him.

George Hill: Can you guys hear me?

Operator: Yes, go ahead.

George Hill: Can you hear me now? Oh, I’m sorry, Britt, Brian, I don’t know what happened there. Just the growth of the oncology business has been pretty impressive over the last couple of years. I was just wondering if you would kind of provide any color to kind of give us some sense of the scope and the scale of that business inside the U.S. distribution segment? Any color would be helpful.

Brian Tyler: When we talk about our oncology business, we talk about it as an ecosystem, everything from distribution to GPO services to iMed EMR, to community to [indiscernible] to the SCRI joint venture. So there’s a lot, a lot of components that go into that. I think what we have provided in terms of sense of scale and scope is 2400 plus providers operating in 27 states seeing roughly 15 plus percent of all cancer patients in the in the community settings, so I hope that helps you get an order of magnitude.

Brian Tyler: Okay. Is that our last question? Great. Well, thank you everybody for the questions, for your interest in McKesson and certainly for joining our call today. Thank you operator for helping facilitate the call. I want to conclude by just reiterating McKesson delivered solid second quarter results. We saw continued momentum across the business and we’re confident in our ability to deliver sustained long-term growth. As a diversified healthcare services company, we’ve made significant progress advancing our company priorities. And lastly and importantly, I want to make sure that I thank the McKesson team for all their contributions. It’s incredibly humbling and proud to be able to leave the talented and dedicated team. Thanks again everybody. I hope you all have a terrific evening.

Operator: Thank you for joining today’s conference call. You may now disconnect and have a great day.

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