Mckesson (MCK) risk factors, FY2025 10-K

General Risks

1. 01We experience costly and disruptive legal disputes
2. 02We experience losses not covered by insurance or indemnification
3. 03We experience costly legal disputes, government actions, and adverse publicity regarding our role in distributing controlled substances such as opioids
4. 04We experience increased costs to distribute controlled substances such as opioids
5. 05We are subject to extensive, complex, and challenging healthcare, environmental, and other laws
6. 06We are subject to extensive and frequently changing laws relating to healthcare fraud, waste, and abuse
7. 07We might lose our ability to purchase, store, or distribute pharmaceuticals, including controlled substances, and medical products
8. 08Privacy, cybersecurity, data protection, and AI laws increase our compliance burden
9. 09Anti-bribery and anti-corruption laws increase our compliance burden
10. 10We might record significant charges from impairment to goodwill, intangibles, and other long-lived assets
11. 11We experience cybersecurity incidents that might significantly compromise our technology systems or might result in material data breaches
12. 12We experience significant problems with information systems or networks
13. 13Our technology products or services might not conform to specifications or perform as we intend
14. 14Pharmaceutical and medical products that we distribute might not conform to specifications or perform as intended
15. 15We might not realize expected benefits from business process initiatives
16. 16We might be unable to successfully complete or integrate acquisitions or other strategic transactions
17. 17From time to time we are adversely impacted by delays or other difficulties with divestitures
18. 18We might not realize the expected tax treatment from our split-off of Change Healthcare
19. 19We might be adversely impacted by outsourcing or similar third-party relationships
20. 20We may be unsuccessful in achieving our strategic growth objectives
21. 21We are impacted by customer purchase reductions, contract non-renewals, payment defaults, and bankruptcies
22. 22Our contracts with governmental entities involve future funding and compliance risks
23. 23We might be harmed by changes in our relationships or contracts with suppliers
24. 24We might infringe intellectual property rights or our intellectual property protections might be inadequate
25. 25Our use of third-party data is subject to risks and limitations that could impede the growth of our data services business
26. 26We might be unable to successfully recruit and retain qualified employees
27. 34Conditions and events outside of our control, such as widespread public health issues, natural disasters, and geopolitical factors adversely impact our business operations and our financial position or results of operations
28. 35We may be adversely affected by global climate change or by regulatory or market responses to such change
29. 36Evolving expectations and regulatory requirements related to governance and sustainability matters may damage our reputation and have an adverse effect on our business, financial condition, and results of operations
30. 37Exclusive forum provisions in our Bylaws could limit our stockholders’ ability to choose their preferred judicial forum for disputes with us or our directors, officers, or employees

Industry and Economic Risks

1. 27We might be adversely impacted by healthcare reform such as changes in pricing and reimbursement models
2. 28We are adversely impacted by competition and industry consolidation
3. 29From time to time we have difficulties in sourcing or selling products due to a variety of causes and are adversely impacted by disruptions or changes in product supply
4. 30We are adversely impacted as a result of our distribution of generic pharmaceuticals
5. 31We are adversely impacted by changes in the economic environments in which we operate, including from inflation, an economic slowdown, a recession, or fluctuations in foreign currency exchange rates
6. 32Changes affecting capital and credit markets might impede access to credit, increase borrowing costs, and disrupt banking services for us and our customers and suppliers and might impair the financial soundness of our customers and suppliers
7. 33We might be adversely impacted by tax legislation or challenges to our tax positions