Bankrupt Rite Aid, McKesson Strike Deal To Secure Steady Drug Deliveries
Portfolio Pulse from Vandana Singh
Rite Aid Corporation (NYSE:RAD) and McKesson Corp (NYSE:MCK) have reached a settlement to ensure the continued supply of drugs throughout Rite Aid's bankruptcy proceedings. The lawsuit against McKesson alleged that the distributor tried to terminate the drug supply agreement before Rite Aid's bankruptcy declaration. Rite Aid will expedite payments for new drug shipments and ensure that new deliveries take precedence over other creditor payments.
October 18, 2023 | 12:41 pm
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POSITIVE IMPACT
McKesson's settlement with Rite Aid ensures the continuation of their long-standing partnership, which could have a positive impact on the company.
The settlement with Rite Aid ensures the continuation of McKesson's long-standing partnership with the company. This could have a positive impact on McKesson in the short term, as it ensures a steady stream of revenue from Rite Aid.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Rite Aid's settlement with McKesson ensures a continued drug supply during its bankruptcy proceedings, which could provide some stability.
The settlement with McKesson ensures a continued drug supply for Rite Aid during its bankruptcy proceedings. This could provide some stability for the company in the short term, but the overall impact of the bankruptcy proceedings on the company's stock price is uncertain.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100