Walmart, McKesson Corp. Collaborate To Lower Drug Costs

Drug distributor McKesson Corp. and Wal-Mart Stores Inc. will collaborate to source generic pharmaceuticals for their U.S. operations, according to a news release Monday. The companies, which have worked together for 30 years, also expanded a long-term distribution agreement.

According to the release, the agreement is “a natural next step for two companies that have a history of working together to lower the cost of pharmaceutical care.” The move to jointly source generic drugs will “drive efficiencies” and add “scale and value for both companies.”

The agreement comes after talks between the two companies on how they can increase efficiency and value to health care, Mark Walchirk, president of McKesson U.S. Pharmaceutical, said in the release. A sourcing partnership for generics will make their businesses stronger and create more value for customers and patients.

“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,” said George Riedl, senior vice president and president of Health and Wellness for Walmart U.S. “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.”