McKesson Corporation (ticker: MCK, exchange: New York Stock Exchange (.N))
News Release -
John Hammergren Named as CEO of McKesson HBOC, Inc. and Company Announces Restructuring of iMcKesson Unit
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 26, 2001--McKesson HBOC, Inc.
(NYSE:MCK) announced today that effective April 1, 2001, John
Hammergren will become president and chief executive officer of
McKesson HBOC, Inc. He previously served as co-chief executive officer
of the company and chief executive officer of its McKessonHBOC
business unit. "Since joining the company in early 1996, John has
played a key role in the growth and direction of the company," said
Alan Seelenfreund, chairman of McKesson HBOC, Inc. "He is a natural
leader and has a demonstrated track record of building shareholder
McKesson HBOC, Inc. also announced that it will restructure its
iMcKesson business unit by moving responsibility for its physician
offerings and transaction hub into the company's Healthcare
Information Technology Business segment. Its medical management
business will continue as a standalone unit.
Following its formation in June 2000, iMcKesson developed an
innovative Web-based clinical and practice management offering for
physicians in the ambulatory setting and revitalized its medical
management business. However, given changes in market conditions, the
company believes that it is no longer advantageous to operate
iMcKesson as a separate business.
"I am profoundly appreciative of the entire iMcKesson team whose
extraordinary efforts have created a much stronger business," said
David L. Mahoney, currently co-chief executive officer and chief
executive officer of iMcKesson. "I look forward to working with John
to ensure a smooth transition before I leave the company."
"David has made many valuable contributions during his ten-year
career at the company," said Seelenfreund. "He joined the company in
July 1990 as vice president, Strategic Planning and made significant
contributions to the development of our pharmacy benefits management
business and to the strengthening of our core business in various key
management roles. He and John collaborated very effectively over the
past 18 months to restore the financial strength and profit momentum
of the company. I wish David the best in his future endeavors."
"The McKesson HBOC, Inc. team is making tremendous progress," said
Hammergren. "But this is only the beginning. The combined strength of
our people and products, together with this restructuring, should
allow us to accelerate growth and deliver additional value for our
customers and shareholders."
McKesson HBOC, Inc. is currently reviewing its operations, cost
structure and asset values, along with expenses that may be incurred
during the process of reorganizing iMcKesson. A special charge will be
required in its fourth fiscal quarter ending March 31, 2001, to cover
asset re-valuations and restructuring costs.
McKesson HBOC, Inc. is hosting a conference call with the
financial community today at 11 A.M., Eastern Time. The U.S. call-in
number is 888/826-1696. The International call-in number is
712/257-0403. The password is "McKessonHBOC." A taped playback of the
call will be available through the end of the day, Tuesday, 2/27/01.
The U.S. call-in number for the playback is 800/570-8791. The
International call-in number for the playback is 402/344-6824. The
password for the playback is "625426." A simultaneous live Webcast of
the call is available through the company's Website,
http://www.mckessonhboc.com, also at 11:00 A.M. EDT today.
McKesson HBOC, Inc., a Fortune 40 corporation, delivers unique
supply and information management solutions that reduce costs and
improve quality for its healthcare customers. More information about
McKesson HBOC, Inc. is available on the company's Website at
Except for the historical information contained herein, the
matters discussed in this press release may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that involves risks and uncertainties that could
cause actual results to differ materially from those projected. These
statements may be identified by their use of forward-looking
terminology such as "believes," "expects," "may," "should," "intends,"
"plans," "estimates," "anticipates" and similar words. The most
significant of these risks and uncertainties are described in the
Company's Form 10-K, Form 10-Q and Form 8-K reports filed with the
Securities and Exchange Commission and include, but are not limited
to: the resolution or outcome of pending litigation and government
investigations relating to the Company's previously announced
financial restatement ("Restatement"); the effect of the events
relating to, or arising out of, the Restatement on the Company's
ability to attract and retain employees and management; the changing
U.S. healthcare environment, including potential changes in private
and governmental reimbursement for healthcare products and services,
the method by which such products and services are delivered,
legislation or regulations governing such products and services, or
mandated benefits or changes in manufacturer's pricing or distribution
policies; substantial defaults in payment or a material reduction in
purchases by large customers; the ability of the Company's Information
Technology Business to retain existing customers and to attract new
customers in light of rapid technological advances, challenges in
integrating the Company's software products, or the slowing or
deferral of demand for such products resulting from the impact of
current or pending government regulations; and the Company's ability
to successfully integrate and operate acquired businesses, and manage
the risks associated with such businesses, including the acquisition
that created McKesson HBOC, Inc. The Company assumes no obligation to
update information contained in this release.
McKesson HBOC, Inc.
Larry Kurtz, 415/983-8418 (VP-Corp. Comm. & IR)