McKesson wins new two-year Veterans Affairs contract

Thu Apr 12, 2012 4:30am IST

Related Topics

Stocks

   

(Reuters) - Pharmaceutical wholesaler McKesson Corp on Wednesday said it was selected by the U.S. Department of Veterans Affairs to continue as the VA's prime pharmaceutical supplier for at least two more years.

News of the contract, which includes options for up to three two-year extensions, sent shares of McKesson up more than 4 percent in after hours trading.

The new agreement, valued by the VA at over $31.6 billion, calls for McKesson to supply all of the VA's more than 700 medical centers and outpatient clinics, as well as its seven consolidated mail outpatient pharmacies.

"Over the past eight years, McKesson has partnered with the VA to serve the healthcare needs of America's veterans," Paul Julian, the company's executive vice president and group president, said in a statement.

The VA, which estimated savings of about $3.26 billion through the life of the contract, said the new agreement goes into effect on May 10.

Shares of McKesson, which closed at $87.90 on the New York Stock Exchange, were trading at $91.89 after hours.

(Reporting By Deena Beasley, editing by M.D. Golan)

FILED UNDER:
  • Most Popular
  • Most Shared
Biotech Leap

Biotech Leap

World's top drugmaker Novartis takes aim at tech  Full Article 

Bird Flu

Bird Flu

Bird flu found in UK, Netherlands but authorities say little risk to humans  Full Article 

Drug Abuse

Drug Abuse

‘Tweens’ most likely to misuse over-the-counter meds.  Full Article 

Nutrition Value

Nutrition Value

School lunches may be better than lunch packed at home.  Full Article 

Smoking Problem

Smoking Problem

U.S. youth smoking, increased use of e-cigarettes a worry: CDC.  Full Article 

No Progress

No Progress

Progress on eliminating measles has stalled, WHO warns.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage