McKesson Wins $5-Billion Contract

McKesson Corp., the largest U.S. drug wholesaler, said it won a new $5-billion supply contract with Columbia/HCA Healthcare Corp., taking business from its biggest rival, Cardinal Health Inc. In the five-year agreement to provide drugs and medical supplies, pharmacy automation systems and consulting services, San Francisco-based McKesson also gets business once held by Bergen Brunswig Corp. and Owens & Minor Inc., said Jeff Prescott, spokesman for Columbia/HCA, the largest U.S. hospital operator. During the last two months, McKesson has signed agreements with retailers Rite Aid Corp. and CVS Corp. that it said will boost annual revenue by $2 billion. So far this year, McKesson shares have soared 41% as profits have grown under an aggressive expansion program masterminded by President and Chief Executive Mark Pulido, who was named to head the company in May 1996. McKesson shares jumped $6.06 to close at $80.25 on the NYSE.