SAN FRANCISCO and CINCINNATI — McKesson Corp. and Omnicare Inc. have expanded their distribution pact to include the sourcing and distribution of branded, specialty and generic pharmaceuticals.
The companies said Monday that the new five-year distribution agreement extends to December 2019.
The nation’s largest institutional pharmacy and a leading specialty drug service provider, Omnicare has partnered with McKesson for the distribution of branded pharmaceuticals for more than 10 years. As part of the expanded agreement, McKesson will now also assume responsibility for the sourcing and distribution of generic drugs for Omnicare as part of McKesson’s proprietary OneStop generics program.
"Omnicare has been a valued customer to McKesson for more than a decade, and I am very pleased with the expansion of our relationship,” stated John Hammergren, chairman and chief executive officer of McKesson. "I am extremely proud of our proven global sourcing expertise, industry-leading service levels and strong operational excellence, and I appreciate the opportunity to deliver additional value for Omnicare through this expanded relationship."
Omnicare noted that the xpanded distribution relationship will bring the company incremental procurement savings for generic pharmaceutical products.
"Following a thorough review of our strategic sourcing alternatives, we determined an expanded partnership with McKesson provided the best pathway for our company amid the rapidly evolving pharmaceutical supply chain," commented Omnicare president and CEO Nitin Sahney. "By leveraging McKesson’s sourcing and distribution expertise across our significant scale, we are better-positioned to optimize our core competency of providing high-quality complex patient care."
