Boston, MA 02/19/2014 (wallstreetpr) – Rite Aid Corporation (NYSE:RAD) which has seen a $500 million improvement over the past three years has entered into a pact agreement with MacKesson Corporation (NYSE:MCK). The deal involves the expanded distribution of the company’s brand and generic Pharmaceuticals. The deal is expected to run for 5 years until March 2019.
The deal is expected to cement Rite Aid position as a leading drug store chain in the US while also positioning MacKesson Corporation (NYSE:MCK) as a leader in the pharmaceutical industry of sourcing and supply chain management. The two partners have been collaborating well for quite some time as they continue to ensure availability of key medications for patients with different ailments. Part of the deal involves McKesson assuming responsibility of sourcing and distributing all generic pharmaceuticals for Rite Aid
Rite Aid Market outlook
Rite Aid Corporation (NYSE:RAD) has been performing exemplary well for the past three years having moved from low trading margins of $1 a share to nearly $6 in the present recent trading sessions. This is a major accomplishment as the company continues to pick itself in the market. The company was facing its harshest period in F2012 where there were thoughts it could be forced to bankruptcy as cash flows continued to dwindle faster than expected
Rite Aid Corporation (NYSE:RAD) saw its debt to asset ratio increase from70% to 85% from 2009 to 2012 something it did not expect. All this seems to have changed in a span of three years as the company is currently growing faster than expected at the back of a $61.9 million profits registered in the fourth quarter of F2013. This was its first quarterly profit in a span of 4 years. Patent cliff and new generic drugs have been the main driving force behind the massive recovery that the company has come to be known of.
Rite Aid Corporation (NYSE:RAD) closed Monday trading session with its shares moving up by 5.91% to close the day at highs of $6.27 a share.
