New relationship to drive greater supply chain efficiencies for both companies; ensures highest levels of service for Rite Aid stores and customers
- McKesson to assume
responsibility for the sourcing and distribution of generic pharmaceuticals for
Rite Aid as part of the proprietary McKesson OneStop Generics® program
- Expanded
distribution relationship to provide Rite Aid with daily direct-to-store
delivery for brand and generic pharmaceutical products
- Leverages 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
- Distribution agreement
extends through March 2019
SAN
FRANCISCO and CAMP HILL, Pa. (Feb.
18, 2014) – 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.”
About McKesson Corporation
McKesson Corporation, currently ranked 14th
on the FORTUNE 500, is a healthcare services and information technology company
dedicated to making the business of healthcare run better. 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. McKesson helps its
customers improve their financial, operational, and clinical performance with
solutions that include pharmaceutical and medical-surgical supply management,
healthcare information technology, and business and clinical services. For more
information, visit www.McKesson.com.
About Rite
Aid
Rite
Aid Corporation is one of the nation's leading drugstore chains with nearly
4,600 stores in 31 states and the District of Columbia and fiscal 2013 annual
revenues of $25.4 billion. Information about Rite Aid, including corporate
background and press releases, is available through the company's website at www.riteaid.com.
Risk Factors
Except
for historical information contained in this press release, matters discussed
may constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended, that involve risks and
uncertainties that could cause actual results to differ materially from those
projected, anticipated or implied. These statements may be identified by their
use of forward-looking terminology such as “believes”, “expects”,
“anticipates”, “may”, “will”, “should”, “seeks”, “approximately”, “intends”,
“plans”, “estimates” or the negative of these words or other comparable
terminology. The discussion of financial trends, strategy, plans or intentions
may also include forward-looking statements. It is not possible to predict or
identify all such risks and uncertainties; however, the most significant of
these risks and uncertainties are described in the Form 10-K, Form 10-Q and
Form 8-K reports filed by Rite Aid Corporation and McKesson Corporation with
the Securities and Exchange Commission and include, but are not limited to,
achievement of the anticipated operational and financial benefits from the
expanded distribution agreement that was announced by both companies today. The reader should not place undue reliance on
forward-looking statements, which speak only as of the date they are first
made. Except to the extent required by law, neither Rite Aid nor McKesson
undertakes any obligation to publicly release the result of any revisions to
these forward-looking statements to reflect events or circumstances after the
date hereof, or to reflect the occurrence of unanticipated events.
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