McKesson, Rite Aid Announce Expanded Distribution Deal
McKesson Corporation (NYSE: MCK) and Rite Aid Corporation (NYSE: RAD) announced the signing of an expanded distribution agreement to include both brand and generic pharmaceuticals. The new five-year agreement, which extends through March 2019, creates efficiencies for both companies by leveraging the strength of Rite Aid as one of the leading national drugstore chains in the United States, and McKesson as a leader in pharmaceutical sourcing and supply chain management.
McKesson and Rite Aid have a long history as trusted partners in ensuring the availability of essential medications to patients. As part of the expanded agreement, McKesson will assume responsibility for the sourcing and distribution of generic pharmaceuticals for Rite Aid as part of the proprietary McKesson One Stop Generics® program. Rite Aid stores will benefit from the full value of McKesson's daily direct-to-store delivery service model for brand and generic pharmaceutical products, ensuring the highest levels of service for their customers.
“I am extremely proud of McKesson's industry-leading service levels and the strength of our global sourcing and supply chain capabilities; which mean that we deliver the right products at the right time with exceptional efficiency for our customers,” said John H. Hammergren, chairman and chief executive officer, McKesson Corporation. “Rite Aid has been a valued customer to McKesson for more than 16 years and I am honored at the trust they have placed in us as we expand our partnership.”
“We are excited to expand our partnership with McKesson,” said John Standley, Rite Aid's chairman and chief executive officer. “The combination of Rite Aid's and McKesson's generic purchasing scale and sourcing expertise, in conjunction with McKesson's industry-leading drug distribution capabilities, will enable us to achieve supply chain efficiencies, provide even better service to Rite Aid customers, and generate additional cash flow to fuel our company's growth.”
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