Profits soar for McKesson during Q1
SAN FRANCISCO A healthcare services and information technology company attributed its jump in profit to strong cost controls.
McKesson reported late Tuesday that while revenues for the first quarter (ended June 30) were flat, first-quarter earnings per diluted share was $1.06, a 28% increase compared with the same time last year. This, the company said, led to significant operating margin expansion in both segments, resulting in 12% growth in Distribution Solutions operating profit and 56% growth in Technology Solutions operating profit.
In the first quarter, McKesson revenues remained at $26.7 billion, primarily impacted by the Fiscal 2009 loss of certain customers in the U.S. pharmaceutical distribution business.
The company continues to execute a balanced capital deployment strategy designed to create additional shareholder value. During the first quarter, McKesson repurchased $275 million of common stock, leaving $555 million remaining on its current share repurchase authorization. For the quarter, McKesson had cash flow from operations of $907 million and ended the quarter with cash of $2.6 billion.
“McKesson had excellent first quarter results, driven by strong performance across the entire company. Every business in both our Distribution and Technology segments met or exceeded our earnings expectations, giving us positive momentum for the remainder of our fiscal year,” said John H. Hammergren, chairman and CEO at McKesson.
Food industry vets commence new lobbying practice
WASHINGTON Policy Solutions, a new government and public affairs firm, has opened a practice in Washington, led by three food industry veterans.
The new firm will provide strategic advice to its clients and assistance in coalition building, grassroots program development, media relations, and in community outreach and corporate responsibility programs.
The three principals of the lobbying group include John Motley, former SVP government affairs for the Food Marketing Institute; Barry Scher, former long-time VP public affairs for Giant Foods; and Jay Truitt, former VP government affairs for the National Cattlemen’s Beef Association.
“With both a new Congress and administration, there will be increased legislative and regulatory activity. Policy Solution’s principals have an extensive experience in working with both Congress and the Executive Branch on a wide range of policy issues, from food safety to energy and from taxes to health care,” said Motley.
For more information on this group, visit policy-solutions.net.
Wegmans seeks to reduce paper usage for prescriptions
ROCHESTER, N.Y. Wegmans’ SVP of consumer affairs Mary Ellen Burris on Sunday noted that Wegmans pharmacies are losing a significant amount of paper weight in her weekly online blog.
Wegmans pharmacies are eliminating pharmacy prescription information sheets for all refills, she noted, which would more or less result in 10 million fewer printouts each year.
“That’s the scoop on … you know, the enclosure with every single prescription that you probably don’t even read while you’re throwing it away,” she wrote. “Now, there are some you should read … a first time prescription, for instance. However, after you understand the precautions, use, side effects, drug interactions and storage (my favorite, for a recently prescribed drug: “do not store in the bathroom” which is where I keep all medical stuff) … such information is typically not really needed for refills.”
Completing implementation of new pharmacy software made it possible, Burris noted, making pharmacy prescription information sheets for refills, which consist of about 50% of the prescriptions filled at Wegmans, obsolete.
Essential information is still printed with each prescription filled, however.