McKesson, Walmart team on generics sourcing, extend distribution agreement

SAN FRANCISCO and BENTONVILLE, Ark. — McKesson and Walmart announced a new generics sourcing agreement Monday alongside and extended distribution contract between the two companies. In a move aimed at improving value and scale for both parties, the agreement will see Walmart and McKesson jointly sourcing generics for their U.S. operations. 

 

“McKesson and Walmart have worked together for decades and throughout our relationship both companies have engaged in an on-going dialogue about how we can work together to bring more efficiency and value to the health care supply chain,” McKesson U.S. Pharmaceutical president Mark Walchirk said. “Expanding our relationship to include a sourcing partnership for generics makes economic and strategic sense for both of us — by bringing together our respective scale and sourcing expertise, we will make our businesses stronger and create more value for our customers and patients.”

 

The agreement will leverage both McKesson’s strength in the pharmaceutical industry and Walmart’s commitment to delivering health and wellness services at an everyday low price, the companies said. 

 

“Walmart and McKesson have built a strong business relationship over the past 30 years by working together to help lower the cost of health care,” Walmart U.S. SVP and president of health and wellness George Riedl said. “The dynamics of health care continue to change, and we’re changing with it. It’s why we are taking our relationship with McKesson to the next level, using our combined size and scale to drive efficiencies, something that is core to our business.”