McKesson Corporation · NYSE:MCK
McKesson — Investor Presentation (May 2021)
19 slides from McKesson's investor presentation, May 2021
Slide 1: Specialty pharmacy: Building a successful partnership
Specialty pharmacy: Building a successful partnership Andrew L. Wilson, Pharm.D., FASHP Vice President 340B Solutions and Services McKesson Pharmaceutical Solutions and Services Kevin A. Scheckelhoff, RPh, MBA Assistant Vice President 340B Solutions and Services McKesson Pharmaceutical Solutions and
Slide 2: Agenda
Agenda • The Specialty pharmacy marketplace considerations for health systems • Specialty pharmacy considerations for the covered entity • Q&A
Slide 3: The Specialty pharmacy marketplace considerations for health systems
The Specialty pharmacy marketplace considerations for health systems Andrew L. Wilson, Pharm.D., FASHP 340B Solutions & Services
Slide 4: Specialty pharmacy is a key focus in all care delivery segments
Specialty pharmacy is a key focus in all care delivery segments Independent and chain retail pharmacy, There are many siloed The Specialty drug market initiatives across the market; Specialty and mail pharmacy, PBMs, has experienced strong in health systems, 340B and health plans and health system h
Slide 5: Specialty marketplace stakeholder interests
Specialty marketplace stakeholder interests Stakeholders Primary interests • Consistent product positioning • Stable average selling price (ASP) Manufacturers • Patient access at appropriate site(s) of care • Data and insights on adherence, side effects, etc. • Lowest-cost care plan providing satisf
Slide 6: Complex therapy and LDD requirements
Complex therapy and LDD requirements Key capability requirements — complex specialty therapies Patient access to product Clinical/care management Data and analytics • Referral network membership • Patient education and adherence • IT infrastructure to support data capture and reporting • Prior autho
Slide 7: 70% of the Specialty drug market is driven by the top therapeutic areas
70% of the Specialty drug market is driven by the top 6 therapeutic areas Eight (8) other Oncology Rheum Neuro HIV Hematol Gastro TAs # Drugs 256 55 42 62 77 35 600 Share (est.) 24% 14% 10% 10% 6% 6% 30% #1 RITUXAN HUMIRA COPAXONE GENVOYA NEULASTA HUMIRA STELARA #2 OPDIVO ENBREL TECFIDERA TRUVADA EP
Slide 8: LDD strategy varies by therapeutic area
LDD strategy varies by therapeutic area Oncology Rheum Neuro HIV Hematol Gastro Eight (8) other TAs # Drugs 256 55 42 62 77 35 600 LDD Share (est.) 80% 30% 60% 0% 24% 25% ~35%* #1 RITUXAN HUMIRA COPAXONE GENVOYA NEULASTA HUMIRA STELARA #2 OPDIVO ENBREL TECFIDERA TRUVADA EPOGEN REMICADE HARVONI #3 IB
Slide 9: >$30B in new Specialty drug launches through 2022
>$30B in new Specialty drug launches through 2022 Expected Therapeutic area Mfr. Drug Indication(s) RoA launch AbbVie Elagolix Cancers of female reprod. system Oral 2018 J&J Tipifarnib Head and neck cancers Oral 2019 Oncology Array Encorafenib Melanoma Oral 2018 Eisai Tazemetostat Various cancers Or
Slide 10: Specialty pharmacy considerations for the covered entity
Specialty pharmacy considerations for the covered entity Kevin Scheckelhoff, RPh, MBA Assistant Vice President 340B Solutions & Services
Slide 11: Health system affiliated specialty
Health system affiliated specialty • Majority of prescriptions generated by specialists with some relationship with one or more health systems • Proximity of specialists creates an opportunity to capture locally generated scripts • Specialty pharmacy has “manageable” barriers to entry • Revenue and
Slide 12: Health system specialty: Basic elements
Health system specialty: Basic elements Capture the prescription Get the drug Get permission Understand the specialty Manufacturers dictate drug The payer has material prescriptions generated distribution for a given influence on Specialty and how to engage the product. There are about pharmacy sele
Slide 13: Potential referral erosion
Potential referral erosion: Site-specific base on variables Washout 5 to 30% on payer can be 50%+ redirecting patient before or after first dose to another contracted pharmacy 15 to 18% on 15% reduction in 5 to 15% reduction in abandonment due to volume due to fall-off prescription volume due financ
Slide 14: Moving beyond dispensing and clinical oversight
Moving beyond dispensing and clinical oversight: The devil in the details • Communicating specialty pharmacy service capabilities Ability to facilitate all referrals regardless of capture potential • Managing the prior authorization process in a timely fashion • Evaluating coverage • Requirements •
Slide 15: Specialty drug access: The role of the wholesaler/distributor
Specialty drug access: The role of the wholesaler/distributor • The manufacturer controls drug distribution parameters • Wholesalers and specialty distributors facilitate • Manufacturers do have specialty distribution “exclusives” • Does not preclude a provider from access even if they do not have t
Slide 16: How to optimize Specialty drug access
How to optimize Specialty drug access: Engage manufacturers in an effective manner Monitor how Specialty Be in a position to articulate Engage your wholesaler If the request is declined items are utilized in your your health system drug Specialty team by the manufacturer, health system: service mode
Slide 17: Reimbursement challenges: Mix more important than ever
Reimbursement challenges: Mix more important than ever … Profit Cost to dispense Loss 340B-eligible patient Non-340B patient 340B-eligible patient Non-340B patient 340B pricing Market price 340B pricing Market price High cost High cost Moderate cost Moderate cost Gross margins 17 McKesson Proprietar
Slide 18: Summary
Summary • Business analytics more important than ever • Understand your system referral mix and its impact o Payer contracts o Reimbursement rates o 340B qualification rates o Cost to dispense o Managing contract pharmacy network • Track disposition of all Specialty referrals if possible • Evaluate
Slide 19: Questions
MCKESSON Questions