McKesson’s European division, which includes Lloydspharmacy and the wholesaler AAH, had a "good" last quarter, the company’s CEO Brian Tyler said in response to a question on the "headwinds" – major challenges that could affect growth – for 2021.

But it has faced challenges around “having good line of sight into how the reimbursement mechanisms really play out” within the NHS in particular, Mr Tyler said during a conference call on McKesson’s third quarter 2020 fiscal results last week (February 4).

While he welcomed England's five-year community pharmacy funding deal, Mr Tyler added that the company would “continue to monitor and evaluate… the nuances of the timing and the different mechanisms that make up that framework.”

A McKesson spokesperson told C+D last week (February 4) that McKesson will analyse the “dynamics” of the UK reimbursement environment before it issues its 2021 expectations for the European arm of the business in May.

US challenge

Another challenge to business growth for 2021 is the imminent US election, as McKesson will have to evaluate the politics and policy “that sort of set the framework” for the company, Mr Tyler added during the conference call.

“But to me that's just a normal part of being in healthcare and a normal part of being in this business,” he said.

McKesson reported a 16% profit increase across its European business in the three months leading up to December 31, which it said was “driven in part by lower operating expenses as a result of actions previously taken to rationalise floor footprint and streamline back office functions”.