SAN FRANCISCO — McKesson and Rite Aid on Tuesday 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 drug store chains in the United States, and McKesson as a leader in pharmaceutical sourcing and supply chain management, the companies reported.
As part of the expanded agreement, McKesson will assume responsibility for the sourcing and distribution of generic pharmaceuticals for Rite Aid as part of McKesson's One Stop proprietary 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.
"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" stated John Hammergren, chairman and CEO, McKesson. "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," commented John Standley, Rite Aid chairman and CEO. "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."