Today drugstore chain Rite Aid (NYSE:RAD) and pharmaceutical distributor McKesson (NYSE:MCK) announced the two companies have expanded the distribution agreement between them to include both branded and generic pharmaceuticals.
"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" noted the chairman and CEO of McKesson Corporation, John H. Hammergren, in the press release. "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."
Through McKesson's proprietary generics program known as One Stop, the agreement, which extends for five years through March 2019, will give McKesson responsibility over both the sourcing and distribution of Rite Aid's generic drugs. The companies highlighted this will result in more efficient supply chain operations for each company.
Rite Aid's chairman and CEO, John Standley, was quoted as saying: "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."