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   Biotech / MedicalMcKesson HBOC (MCK)


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To: epicure who wrote (153)3/28/2000 11:43:00 PM
From: dogemup
   of 165
 
Long MCK-I'm here.
I noticed the move and the volume. I'm long MCK since the big drop. Been buying in the 20's and high teens. I'm under water over 20% in one account, and up about 5% in another account. Don't have any good insight about the recent action. I think this is a value play and money is rotating into these kinds of stocks. Hoping the uptrend will continue.

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To: dogemup who wrote (154)3/28/2000 11:59:00 PM
From: epicure
   of 165
 
Nice to know you are out there. I was lonely.

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To: epicure who wrote (155)4/19/2000 12:44:00 AM
From: Phil Placier
   of 165
 
Any thoughts regarding when, if ever, this stock will increase about the 20 +/- level?

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To: Phil Placier who wrote (156)4/19/2000 9:34:00 AM
From: epicure
   of 165
 
LEt me get out my psychic hat.....

From the chart, I'd guess soon. But I've been thinking that for a while, and I've been wrong.

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To: epicure who wrote (157)9/26/2000 10:31:31 AM
From: Kat
   of 165
 
Looks like we are all finally right on this one. I predict a run toward 50. Getting alot of attention !

Kat

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To: Rob Pierce who started this subject1/11/2001 8:14:12 AM
From: Paul Lee
   of 165
 
TWST: Could you give our readers an overview of
iMcKesson (NYSE:MCK)?

Mr. Mahoney: iMcKesson is a six-month-old subsidiary
of McKesson HBOC Inc. that provides a combination of
both Web and legacy IT solutions for physician offices
and medical management tools a nd services for payors.
iMcKesson has leading positions in a number of market
segments within the payor and provider markets. We are
the leading provider of clinical appropriateness criteria.
We are the leader in decision support and clinical
resource management software. We are the leader in
outsourced phone-based care center telephone support
in medical management, and iMcKesson has the
industry’s second largest medical claims clearinghouse,
which processes more than 100 million medical claims
per year. Everything we do starts from a rigorous clinical
base with a focus on patient outcomes.

TWST: Do you have an international presence?

Mr. Mahoney: We have a large presence in the US with a presence in Canada,
the UK, Australia and New Zealand. So, for example, in Australia and New
Zealand, we provide medical management services for 8 million people.

TWST: What do you see as your most distinct competitive advantages?

Mr. Mahoney: A couple of things. First, and probably most important, is the
breadth of our offering. There are very few e-health companies that can address
as broad a range of needs that our customers have as well as we can. Second is
the broad scale of our customer base, and importantly, the scale of our installed
customers is unique. Third is our domain expertise. We are talented technologists
who really know health care. We are not trying to learn health care from a
technology base. We are bringing a very deep knowledge of health care to focus
on the problems our technology can solve today. Lastly, I would highlight that we
have a very strong clinical focus that comes from that healthcare expertise with
defensible intellectual property that backs up our products.

TWST: Will your strategy for growth also include mergers and
acquisitions?

Mr. Mahoney: Absolutely, because of the strength of our service and product
offering right now, we think that we will have a lot of opportunities to grow by
acquisition.

TWST: What do you see as the potential rate of gain in sales and earnings
for iMcKesson over the next year or so?

Mr. Mahoney: Our goals going forward, without putting a specific number around
them, are to maintain the leadership position that we have established in the core
medical management and claims processing markets. I think it is going to be very
important for us to make that leadership position more visible to both the customer
markets and to the capital markets. In addition, we will leverage the Internet to
expand upon our core triage medical management services capabilities, as well
as the opportunity created by HIPAA to increase the volume of medical claims
processed through our Transaction Solutions Hub. Additionally, we will be focused
on establishing PracticePoint Connect as the premier tool for Web-based
provider-patient communications.

CEO is concerned about the health of iMckesson's customer base
David Mahoney, iMcKesson
DAVID MAHONEY is the Chief Executive Officer of iMcKesson, business unit of McKesson HBOC, Inc.


For Subscribers
Get the complete article now!

TWST: Where will most of your potential revenue growth come from in the year?

Mr. Mahoney: About two-thirds of our current revenue comes from sales of our medical management solutions, and one-third from the physician office market. We are accelerating our growth in these segments, leveraging our re-focused, expanded medical management sales force and on the provider solutions side, our installed base in 20% of the nation’s largest physician practices. We anticipate the fastest growing pieces will be the services part of medical management and the claims clearinghouse part of the physician office solution.

TWST: What do you see as the most significant industry trends that will be taking place in the next year?

Mr. Mahoney: I think a couple of things. First, the increased need for health plans to focus on medical management effectiveness, responding to the trends of high premium rate increases, concerns by both employers and consumers about inappropriate utilization management, and the increasing empowerment of patients all leading, if you are a health plan, to be more focused on medical management effectiveness. The second key trend, and there has been a lot of emphasis on this, is the connectivity strategies between payors and providers, particularly physicians, but also hospitals and patients. This is being driven by regulatory changes, such as HIPAA, and by changes in the basic demographics of the US population, which is leading to more and more older people prone to chronic disease. Finally, of course, there is the trend of increasing utilization of the Web, both for delivering basic information to patients as well as to solve some of these medical management and connectivity issues.

TWST: What do you see as the most significant risks and challenges that iMcKesson (NYSE:MCK) will be facing?

Mr. Mahoney: The healthcare system as a whole is under pressure so that we are always concerned, and I think we need to be concerned going forward, about the health of our customer base. Whether you are talking about reimbursement pressures being put on our provider customer base or the regulatory and other pressures put on our health plan or payor customer base, that’s clearly something we worry about. Additionally, any business today needs to be quite concerned about a continued ability to attract and retain talent in a highly competitive market.

TWST: What are your thoughts and comments on the current stock prices for iMcKesson?

Mr. Mahoney: iMcKesson is a subsidiary of McKesson HBOC, which is traded on the NYSE under the symbol MCK.

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To: Rob Pierce who started this subject1/23/2001 5:33:07 PM
From: Paul Lee
   of 165
 
McKesson: Co. 'Well-Positioned' On Generic
Drugs

Dow Jones Newswires

By Dinah Wisenberg Brin
Of DOW JONES NEWSWIRES

PHILADELPHIA -- McKesson HBOC Inc. (MCK), the country's largest
distributor of drugs and health-care products, posted fiscal third-quarter
results Tuesday that pleased Wall Street, despite missing analysts' consensus
estimate by a penny a share.

"We have a positive momentum building in our business," Chief Executive
John H. Hammergren said on a conference call with analysts.

The San Francisco company reported earnings from continuing operations,
excluding charges, of $69.3 million, or 24 cents a diluted share, compared
with earnings of $60.5 million, or 21 cents a share, in the same quarter the
previous year.

A First Call/Thomson Financial consensus of 18 analysts had estimated
earnings of 25 cents a share.

Analyst Leonard S. Yaffe of Banc of America Securities said he was pleased
with the results, which slightly exceeded his own estimate.

"Overall, it was a solid quarter and we saw nothing unusual relative to our
expectations," Yaffe said.

The stock had sold off in the past few weeks as investors worried McKesson
might miss analysts' estimates by a wide margin, he said.

"Now that the quarter came out and it was above our estimate, a penny
below consensus, I think people feel quite comfortable with the outlook of the
company, and we continue to rate the stock a buy," Yaffe said. He has a
12-month price target of $38 a share.

Analyst Ray Lewis of McDonald Investments Inc. liked the trends in
McKesson's two main businesses, supply management and information
technology.

"Both the revenue and margin trends in those businesses were slightly better
than what we had been looking for," Lewis said, though he noted that
McKesson's physician software unit, iMcKesson, posted a wider loss than
what he had expected.

Shares of McKesson were recently up $2.97, or 10.2%, at $31.97 a share
on the New York Stock Exchange on volume of 3.1 million shares. The
average daily volume is 1.7 million shares.

CEO Hammergren told analysts that McKesson should grow in the
low-to-middle double-digit range next year, which is in line with this quarter's
14% operating EPS growth. Profit margins should expand in the fourth
quarter and next fiscal year, but Hammergren wouldn't estimate by how much.

The company is "exceptionally well-positioned" to take advantage of the fact
that $48 billion worth of brand-name pharmaceuticals are coming off patent
and into the generic-drug realm over the next three years, Hammergren said,
citing its 7,000 independent-pharmacy customers.

In addition, Hammergren said that in the next several weeks, McKesson will
open its new comprehensive supply-management Web portal, which will
allow the company to expand its marketing opportunities to 7,000 customers
and reduce processing costs.

McKesson's supply-management and information-technology businesses are
building positive momentum, he said.

Revenue at the company's health-care IT unit, which supplies software and
networks to hospitals, fell 10.6% year-over-year to $199.8 million from
$223.6 million, but rose sequentially for the first time in six quarters. The IT
backlog also rose sequentially over the second quarter.

Operating profit at the health-care supply-management unit rose nearly 21%
before special items to $166.5 million from $137.9 million, while revenue rose
7.4% to $7 billion from $6.5 billion. The revenue comparison was affected by
heavy year-2000-related purchases that occurred in December 1999, the
company said.

David Mahoney, chief executive of subsidiary iMcKesson, told analysts that
the iMcKesson business is in the early stages of a turnaround, and that he was
pleased with the quarter. The full impact of its new contracts, however, won't
be seen until the next fiscal year, Mahoney said.

The unit posted a 2.4% rise in revenue, to $72.3 million from $70.6 million. It
had a $12.5 million operating loss, compared with a $4.1 million profit in the
year-ago quarter, both before special items.

-By Dinah Wisenberg Brin, Dow Jones Newswires; 215-656-8285;
dinah.brin@dowjones.com

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To: Paul Lee who wrote (160)10/18/2001 3:05:12 AM
From: big guy
   of 165
 
MCK is the largest distributor of CIPRO !!

Hello... Doesn't anybody know that MCK is the largest distributor of CIPRO ? This stock ought to be going through the roof. It was mentioned in an article i saw recently, but the article from yahoo didn't make it onto the news articles here on SI. That is too bad. Anybody else see it? Can you provide it for the thread?

Thanks,
big guy

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To: Rob Pierce who started this subject3/16/2002 10:38:39 AM
From: Paul Lee
   of 165
 
The Long Road Back

McKesson has more than recovered from an ill-fated
acquisition. But its shares have not.

By Jaye Scholl

The stock market doesn't seem to know what to do with McKesson.
Three-and-a-half years ago, when the 168-year-old drug distributor
announced a deal to acquire HBO & Co., then a leader in medical
information systems, McKesson's shares soared to an all-time high of 96.25,
more than double their price just a year earlier.

Six months later, however, HBO was revealed to be a swamp of fraudulent
accounting and shady deals. In the largest one-day loss ever recorded on
Wall Street at the time, the company's shares plummeted 47%, from 65 a
share to 34, vaporizing $9 billion in shareholder wealth. McKesson ultimately
had to restate downward, by $191 million, three years of HBO's earnings.
And the company's shares, recently at 37, have never recovered.

Wall Street may be missing the story again. While the $14 billion in stock that
McKesson paid for HBO is mostly money down the rabbit hole now, what
remains of the acquired firm, now known as McKesson Information
Solutions, is not totally without value, as the market would have you believe.
What's more, McKesson's basic drug distribution business is thriving. In fiscal
2002, McKesson is expected to report earnings around $430 million, or
$1.46 a share, on revenues of $50 billion. That's up from a loss of $48.3
million and well above the company's peak of $304.6 million, or $1.10 a
share, in 1998. According to FirstCall, analysts are predicting earnings of
$1.80 a share in fiscal 2003, a 23% increase. McKesson's shares trade at 20
times the '03 estimate.

Over the past five years, McKesson has more than tripled revenues, from
$15.7 million in 1997, mainly through acquisition. Yet McKesson trades at a
mere 0.19 times sales, a steep discount to the 0.61 for close rival Cardinal
Health.

Most of McKesson's earnings are
coming from drug distribution. Last
year, overall pharmaceutical sales
in North America rose 16%, according to IMS Health, which monitors them.
Sales over the next few years are expected to remain in that range, what with
three million of the 76 million Baby Boomers turning 60 -- the age when
serious illness begins to set in -- each year, and as more drug therapies
become an alternative to surgery.

But McKesson Information Solutions, which will post revenues of $1 billion in
fiscal 2002, should earn at least $50 million in operating profits this year, up
from $1 million last year. And McKesson Chief Executive John Hammergren
clearly thinks the opportunities for the business are wide open.

"I think it's possible to become the Microsoft of health care," Hammergren
told Barron's in an interview at the company's San Francisco headquarters.
He also thinks McKesson has the inside track. "When the hospital's c-suite
[corporate suite] thinks of an information technology solution, McKesson is
the only company that can provide all of its answers."

Plenty of people -- competitors, clients, industry pundits -- would disagree
with Hammergren's heady assessment of his company. But the company is
earning high marks in the industry for stabilizing the division over the past two
years. In a recent survey of the top 20 healthcare information technology
vendors by KLAS Enterprises, an independent agency that conducts
confidential interviews with buyers of medical technology, McKesson was
named "most improved." No question there was, in the wake of the scandal, a
lot to improve upon. But obviously, there has been significant progress.

There is plenty of progress yet to be made, not just for McKesson, but for the
industry as a whole. More than 25 years after health-care outfits began
computerizing their operations, medical-information systems have been poor
relations to their wealthy corporate cousins. Forget about systems that can
maintain a person's medical records from cradle to grave, electronically
transmit lab results or X-rays to doctors at their offices and homes or provide
a link from a patient's hospital bed to a databank of best-care practices.
Hospitals still take months to produce a single comprehensive medical bill
after a patient's stay.

The problem is that hospitals typically spend just 3% of their operating
revenue on information technology, compared with 5% for manufacturers and
10% for banks. Your ATM card can access dollars in California or euros in
France, but the surgery schedule for a hospital's operating room still is
circulated on paper.

Indeed, most hospital computer systems, which were initially introduced to
solve problems such as accounting and billing, are obsolete. And as various
departments added their own systems for admissions, radiology, laboratory,
emergency-room and pharmacy services, they created an electronic Tower of
Babel, with none of the systems capable of speaking to one another. The
solutions range from starting over from scratch with a single supplier to
building a "best of breed" system to upgrading the legacy software.

While hospitals mull over their strategies, powerful outside forces are pushing
hospitals to pursue technological solutions to some of their more intractable
problems, in particular, the alarming number of medical errors. According to
he Institute of Medicine's 1999 report, To Err is Human, at least 45,000
deaths occurred every year because of avoidable medical mistakes.

The IOM's disturbing findings sparked the creation of the Leapfrog Group, a
coalition of some of the country's biggest employers, including General
Electric, General Motors, AT&T, IBM and Boeing. Leapfrog quickly
identified three areas that can improve patient safety in hospitals: allowing only
physicians with extensive experience perform certain medical procedures --
employ specialists in intensive care units and required use of computer
physician order entry, or CPOE. Leapfrog companies, which collectively pay
15% of the health-insurance bill in the U.S., warned that they would direct
their 28 million employees and their families only to hospitals with CPOE.

Currently only 3% of the 5,500 U.S. hospitals use CPOE, and the Leapfrog
mandate has sent the rest on a buying spree. Last July, McKesson formed a
partnership with Vanderbilt University Medical Center to build a CPOE
systems. Scheduled for release in July, it's billed as the jewel in the crown of
McKesson's new Horizon Clinicals, an array of integrated systems.

Another technology push is coming from the Health Insurance Portability and
Accountability Act of 1996. HIPAA is a health reform package that
germinated in the Clinton Administration and contains two big
technology-related regulations.

One requires health-care providers to use a common electronic language for
transmitting data instead of the 400 formats now in use. It seeks to end the
confusion that arises, for example, when "congestive heart failure," is
sometimes spelled out, sometimes abbreviated as "chf" or sometimes simply
assigned a code number.

On top of that, health-care providers are reeling from the latest evidence,
based on the past 18 months, that reveal a sharp increase in health care use
among people ages 40 to 54 years. Between body scans, plastic surgery and
new knees, Baby Boomers are visiting their doctors and scheduling surgery at
three times the historical use rate.

McKesson, of course, is not alone in chasing this potentially huge market.

Large enterprise software companies, including Oracle, SAP and PeopleSoft,
have their eye on the industry. General Electric, an on-again, off-again
participant, is back and has recently bought a score of health-care information
companies. And Siemens, the big German conglomerate, entered the medical
IT field in May 2000 with the acquisition of Shared Medical Systems.

A handful of specialists in medical-information management systems are also
competing. They include Cerner, Eclipsys, IDX Systems. No one company
has more than a sliver of this highly fragmented business. Based on 2000
revenues, Siemens had the largest market share, with 4.9%, followed by
McKesson, with 4.8% and Cerner with 2.1%. The market share of the six
biggest players amounts to only 15.9%. This year, the industry as a whole is
expected bring in $23 billion.

McKesson has the largest installed base, and while much of it is rickety with
age, its has the appeal of the familiar. More important, McKesson has the
deep pockets and, apparently, the commitment, to fund the R&D required to
bring forth the next generation of medical information technology -- Horizon
Clinicals. This suite of applications has been getting traction over the past
year.

Pill-pusher

In its core drug-distribution business, McKesson acts as a middle man, buying
medicine from the pharmaceutical manufacturers and reselling it to big retailers
like Rite-Aid, Wal-Mart and Costco, as well as to independent pharmacies,
hospitals, clinics and HMOs. In a good year, this business earns a ho-hum
3% profit on revenues. But demand is growing, and margins could get a bump
from the increasing number of drugs that are coming off patent. When generic
drugs are available from more than one manufacturer, distributors can garner
deep discounts by throwing all of their business to a single firm.

McKesson's major rivals in drug distribution are AmeriSourceBergen and
Cardinal Health. McKesson was shocked from its complacency a decade ago
as upstart Cardinal started grabbing market share. Since then, Cardinal and
AmeriSourceBergen have increased their clout by gobbling up competitors.
Based on trailing 12-month revenues, Cardinal Health now ranks No. 1 in the
industry, followed closely by McKesson. AmeriSource and Bergen combined
last year to become a strong No. 3.

Hammergren cheerfully predicts that McKesson's distribution business can
grow within its existing customer base. By way of example, he cites
Wal-Mart's recent pick of McKesson to repackage the drugs for retail sale.
As Hammergren told analysts, McKesson "can continue to perform very
nicely without having to take major share from our competitors."

Having blundered badly three years ago, McKesson, once a Wall Street
darling, now can't seem to find a friend. But given it strong core business and
the opportunities that lie ahead in information technology, investors may find
the shares quite amiable in the years ahead.

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From: Paul Senior10/12/2016 12:07:15 AM
   of 165
 
Looks like a 5 bagger since the last post here.

I wasn't in then; I am now though.

Hoping the company's record will continue and the stock will revert to better multiple.

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