UPDATE: McKesson Selected by Department of Veterans Affairs as Prime Pharmaceutical Supplier to VA Healthcare System

McKesson Corporation MCK announced Wednesday that it has been selected by the Department of Veterans Affairs, which runs the nation's largest integrated healthcare system, to continue as the VA's prime pharmaceutical supplier. The two-year agreement calls for McKesson to supply all of the VA's medical centers and outpatient clinics, as well as the VA's Consolidated Mail Outpatient Pharmacies. "We are extremely pleased to have been selected by the Department of Veterans Affairs to continue as its primary pharmaceutical supplier," said John H. Hammergren, chairman and chief executive officer, McKesson Corporation. "Our track record for driving substantial financial efficiencies while exceeding service levels is why government and commercial customers continue to choose McKesson. We are confident in our ability to meet the VA's growing needs over the term of our relationship, and in the process create significant value for the VA and for McKesson's shareholders." As part of the contract award, McKesson will continue to supply pharmaceuticals to more than 700 locations, including more than 270 medical centers, as well as the VA's seven CMOPs. The initial two-year contract includes options for up to three, two-year extensions.