News

McKesson IDs Health Mart expansion, Walmart partnership as fiscal 2018 growth drivers

BY Michael Johnsen

SAN FRANCISCO – Heading into fiscal 2018, McKesson has some tailwinds that are driving optimism for the wholesaler, including a recaptured generics share in the independent retail pharmacy space and a burgeoning partnership with Walmart.

"In the first half of our fiscal year [2017], we saw increased price competition in the independent retail pharmacy channel, which eventually resulted in reduced volumes for McKesson," acknowledged John Hammergren, chairman and CEO. But the wholesaler has recaptured that lost volume, he said. "In the end, it was important that we were able to recapture our volume, but is even more significant to retain and build upon on our longstanding relationships we’ve established with [the] customer base," Hammergren added. "This included expanding our Health Mart franchises … adding hundreds of new stores."

And the company's year-old generics sourcing partnership with Walmart, ClarusONE, has also made significant progress, Hammergren said. "We are encouraged by the first year success of this initiative, which demonstrates how our sourcing expertise delivers significant value. [And] we are optimistic that we will identify expanded opportunities to partner with Walmart in the future."

"This new organization first, focused on harmonizing pricing across our respective sourcing arrangement," added James Beer, EVP and CFO, McKesson. "This was completed late in fiscal 2017. Walmart is realizing the benefits from this initiative, and we are now progressing on discussions with manufacturers based on our joint volumes from which we expect to share additional synergies." he said. "However, it is important to note that the economics from ClarusONE … represents only a portion of the overall value of the expanded relationship with Walmart."

"As we exit a challenging fiscal year, I am encouraged by our strong fourth-quarter results,” Hammergren stated. “Our Fiscal 2017 was impacted by both company-specific and industry pressures. However, due to the actions we have taken, I believe we have positioned our businesses well to address evolving market dynamics and to capitalize on future growth opportunities.”

McKesson reported revenues of $48.7 billion, up 4%, for the fourth quarter ended March 31. For the fiscal year, McKesson had revenues of $198.5 billion, also up 4%.

“Despite the difficult business environment, we were able to drive record operating cash flow results in Fiscal 2017,” Hammergren continued. “We were also pleased with the creation of Change Healthcare, which we believe will drive significant value for our shareholders.”

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

CVS Health to host Baseball Camp for Veterans on May 25

BY Brian Berk

WOONSOCKET, R.I. — CVS Health will kick off Memorial Day celebrations on May 25 with a special event when it hosts a group of military veterans from across New England at Fenway Park. The seventh-annual CVS Health Baseball Camp for Veterans is a full-day event, including on-field batting practice with Red Sox Hitting Coaches Chili Davis and Victor Rodriguez, a VIP tour of Fenway Park and tickets to the night’s game.

The event is part of CVS Health’s commitment to America’s military heroes and veterans of all abilities. 

In addition to on-field batting practice and a VIP tour, participants will enjoy lunch in the Red Sox dugout; have photos taken in front of the Green Monster; and gain early entry to pregame batting practice and receive tickets to the evening’s game in the CVS Pharmacy Family section.

The veterans participating in the CVS Health Baseball Camp are from the Salute Military Golf Association of New England — a non-profit organization dedicated to bringing the game of golf to post 9/11 veterans throughout New England as a form of mental and physical rehabilitation. 

The participating veterans are from the following states and towns:

  • Massachusetts — Attleboro, Bellingham, Boston, Chicopee, Fall River, Gardner, Halifax, Haverhill, Leominster, Mansfield, Montague, Orange, Spencer, Stoneham, Weymouth and Wilmington
  • Rhode Island — Manville, Pawtucket and Warwick

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

Dreft rolls out 65% plant-based Dreft purtouch

BY DSN STAFF

Dreft rolls out 65% plant-based Dreft purtouch

CINCINNATI — Baby laundry detergent brand Dreft has announced the latest addition to its offerings. The company on Thursday launched Dreft purtouch, a 65% plant-based hypoallergenic baby detergent, which it says is made with naturally derived ingredients.

Dreft purtouch is free of dyes, chlorine, phosphates, ethanolamine and optical brighteners, the brand said, noting that it also is manufactured with 100% renewable wind power electricity at a zero waste-to-landfill site. The launch comes as Dreft shares the results of its survey finding that more than half of expecting parents said they began reading product labels more closely and buying more natural food and drinks after learning they were expecting. Seventy percent of those surveyed planned to remove potentially harmful products or objects from their home once their babies arrive.

“Whether in their nurseries, their bathrooms or even their laundry room, moms and dads are looking for gentle alternatives for their bundles of joy,” Dreft brand manager Mike Frey said. “As a trusted brand by families for more than 80 years, we’re excited to add Dreft purtouch to our product line-up to provide those parents who are seeking natural-based products with another baby detergent option. We’re proud to provide them with a gentle 65% plant-based baby detergent that uses renewable materials without sacrificing an effective clean. It’s the next step in our mission to design the best possible detergent for baby while thinking of their future world.”

Dreft says the new formula can help remove 99% of baby stains, and also is recommended by pediatricians for a first wash of new clothes for babies. Dreft purtouch is available in 40- and 75-oz. bottles in one-stop retailers, online stores and baby specialty stores.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES