Morningstar - McKesson Corporation (MCK) Despite Amazons Acquisition of PillPack, Market Underappreciates Drug Supply Chain Moats

Report

Morningstar

Vishnu Lekraj

Despite Amazon's Acquisition of PillPack, Market Underappreciates Drug Supply Chain Moats

On June 28, Amazon announced it will purchase mail-order pharmacy startup PillPack. This move will give Amazon a foothold within the pharmaceutical supply chain and was the most logical step for the online conglomerate to make as we believed retail pharmacy was going to be the easiest segment of the pharmaceutical supply chain for Amazon to enter. However, we also believe it will still be tough for the firm to create any major disruption within the healthcare space given the insurance dynamics t...

28/06/2018 13 EN

Underlying

McKesson Corporation

McKesson provides pharmaceuticals and medical supplies and services to its customers. The company's segments include: U.S. Pharmaceutical and Specialty Solutions, which provides distribution and logistics services for branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs and other healthcare-related products to customers; European Pharmaceutical Solutions, which provides distribution and services to wholesale, institutional and retail customers in European countries where it owns, partners or franchises with retail pharmacies; and Medical-Surgical Solutions, which delivers medical-supply distribution, logistics, biomedical and other services to healthcare providers.

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US58155Q1031 New York Stock Exchange United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Vishnu Lekraj

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Moody's Ratings announces completion of a periodic review of ratings of McKesson Corporation

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Despite Amazon's Acquisition of PillPack, Market Underappreciates Drug Supply Chain Moats

Mckesson Corp: 1 director

McKesson Corporation: Update to credit analysis

Moody's Ratings announces completion of a periodic review of ratings of McKesson Corporation

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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