McKesson signals next phase for MMS with new name

IRVING, Texas – McKesson’s Medical-Surgical Solutions business plans to formally operate as Wellverse starting in January 2027, as part of a phased transition, says McKesson CEO Brian Tyler.

The company announced the new name on Aug. 5 as part of its financial results for the first quarter of fiscal year 2027.

“Wellverse delivers a future where health care providers and patients thrive,” Tyler said during a conference call to discuss the results. “This is an important step as we establish a distinct market identity and brand that reflects the organization's purpose and vision.”

McKesson says Wellverse will continue to offer a broad portfolio of medical products, distribution services, inventory and business management tools, and personalized support to health care providers across care settings, including physician offices, health systems, laboratories and home health.

In other steps toward the planned separation of MMS, McKesson on June 9 established a secured Term Loan B facility of $2.25 billion and on June 1 completed the sale of an about 13% minority interest to Apollo Funds for $1.25 billion.

“Together, these actions, advanced separation readiness and support the financial flexibility of Wellverse and reinforce our focus on maximizing long-term shareholder value while executing against the planned separation,” Tyler said.

McKesson reported revenues of $2.8 billion for MMS in the first quarter, a 4% increase year over year, representing an improvement in growth trends compared to prior quarters. Operating profit was $195 million, a 20% decrease year over year, driven by product mix and one-time administrative expense, partially offset by contributions from the extended care channel.

As part of the Apollo transaction, the company recorded a noncash GAAP-only accounting adjustment of $293 million in the first quarter related to the remeasurement of the redeemable noncontrolling interest.

McKesson anticipates revenue growth of 1% to 6% and operating profit growth of flat to 4% for MMS for the full year.

“The Med-Surg business has a diversified offering and broad customer reach across alternative site of care, including ambulatory and extended care, consumer health and at-home care settings,” said McKesson CFO Kenny Cheung, who joined the company in May, succeeding Britt Vitalone. “The team remains focused on disciplined execution and operating efficiencies, which strengthens our position and supports our ability to serve our customers.”

• Related: McKesson moves MMS closer to IPO.