Psssst...CVS Health has McKesson under Its thumb. It was not that long ago MCK released its annual report for FY16. The report icnluded one big surprise: McKesson’s sales to CVS Health, its largest customer, grew to $38.7 billion—up by an astonishing $12 billion (+44%) from the previous year’s numbers. Going off those numbers, CVS Health acounted for about 25% of McKesson’s total North American drug distribution revenues. Wow!!!!!!! Smells Customer Concentration. Since then, McKesson’s revenues from CVS Health were further boosted by CVS Health’s recent big acquisitions: CVS Health acquisition of Omnicare and of Target Pharmacy. Note that these transactions closed in the middle of McKesson’s 2016 fiscal year. This year, the full effect of these deals is showing up in McKesson’s financials. McKesson is now CVS Health SWEETEST, hmmmmm, PET! Run for cover, there is no end in sight............
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Yup! Start sending those resumes out! LOL like RIGHT NOW
Stay sharp folks! Polish up your resume. MCK is in for some trying times.
Not sure what the hoopla was all about when McKesson inked that generic sourcing deal with Walmart. Walmart only purchases $2.5 Billion worth generics on a yearly basis (for now). They made it sound like the deal was a game changer. I say ....NOT SO FAST....
While it's clear McKesson has fallen on hard times, it has yet to hit rock bottom. The company is due for more hemorrhaging before things kinda stabilize. Think about it again, McKesson is so dependent on CVS that when CVS sneezes McKesson catches pneumonia. Please read up on what's happening in the industry. Don't rely on One Post for credible information on the future prospects of McKesson.
This is so true - CVS calls the shots