Upon Fresh Look, We Are Increasing McKesson's Fair Value Estimate to $348 From $336

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $212 billion in sales from its U.S. pharmaceutical segment in fiscal year 2022, the company supplies roughly one third of the domestic drug distribution market. Its two close competitors are AmerisourceBergen and Cardinal Health. Together, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the U.S. market.