Rite Aid Corp. announced a new five-year distribution agreement with McKesson Corp. to include both brand and generic pharmaceuticals.
As part of the 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, according to a news release.
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,” the release states.
The agreement runs through March 2019.
“We are excited to expand our partnership with McKesson,” said John Standley, Rite Aid’s 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.”
Ranked 14th on the Fortune 500 list, McKesson is a health care services and information technology company dedicated to finding health care efficiencies. McKesson “partners with payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others across the spectrum of care to build healthier organizations that deliver better care to patients in every setting,” the company said in the release.
The East Pennsboro Township-based Rite Aid has nearly 4,600 drugstores in 31 states and the District of Columbia and fiscal 2013 annual revenues of $25.4 billion.