On Friday, McKesson sharply lowered its outlook for future profits. Its stock closed down 23%, erasing more than $8 billion of market capitalization. Ouch.
The wholesale industry’s problems have been building for some time. From McKesson’s earnings call, I have interpreted some of its most revealing statements, which illuminate the key challenges facing wholesalers:
- Why wholesalers want brand-name drug prices to go up—and the negative impact of slowing inflation
- A sell-side price war started by…AmerisourceBergen?
- The factors pressuring wholesalers' profits from specialty pharmacies
McKesson has a plan to recapture its lost profits from customers and manufacturers. Don’t say you weren’t warned when McKesson and its peers come asking for more money.
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