McKesson Ventures highlights investment priorities amidst a trail of successful exits
In a recent interview, McKesson Ventures Partner Michelle Snyder discussed the latest trends in digital health and how McKesson Ventures chooses its investments.
As a corporate venture group, the McKesson Ventures team is well positioned to identify emerging trends in digital health and invest in innovative business models. The team tries to introduce its portfolio companies to the broader McKesson Corporation to see if there are opportunities for both portfolio companies and McKesson to find value, when and where that makes sense.
“One of our mantras has always been to be there for the companies we invest in and to support those companies over their lifespan. We like to say that we’re a valued investor,” Snyder said. “I think one of the benefits we bring as a team is this great mix of both venture experience and the operating experience. And that helps us better support our companies as they navigate the ups and downs of building a successful business.”
Snyder pointed out that with the investment team’s experience, they know what companies need at different stages and how they can best support them. “Almost any health IT company has challenging times and has to make tough decisions,” she said. “For me as an investor, I’m really looking for whether the management team can be adaptable and responsible to the inevitable challenges and opportunities that come their way.”
As for the firm’s investment priorities, Snyder said McKesson Ventures is doubling down in some areas where her team has strong convictions such as biopharma clinical and commercial services, pharmacy transformation, oncology, data and analytics, and alternative/risk-based models of care.
Snyder also observed that new models of primary care comprise one of the most active areas in the market right now in terms of deal flow. “These companies are addressing how to deliver lower-cost, but effective quality care using technology and evidence-based guidelines with multidisciplinary teams. They know virtual care won’t work for everybody so a hybrid model is best to provide an elevated primary care experience,” she said.
McKesson Ventures is one of the most active investors in the biopharma software sector, with Komodo Health, Evidation, and M2GEN among its portfolio companies. Another area Snyder expressed enthusiasm for is the supply chain, where the industry is ripe for digitization—an area where McKesson Ventures portfolio company Vineti has a role to play.
“It’s going to be a complicated, but necessary, problem to solve,” Snyder said. “Success will depend not only on getting these therapies to market but also eventually reducing the cost of them so that they can become more widely available.”
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