By Michael Calia 
 

McKesson Corp. (MCK) and Rite Aid Corp. (RAD) on Tuesday said they had expanded their distribution agreement to include generic drugs.

McKesson, whose largest business focuses on distributing prescription drugs and medical products in the U.S., will assume the responsibility for distributing and sourcing generic drugs for Rite Aid, the companies said.

The agreement runs through March 2019, they said, although financial terms weren't disclosed.

McKesson Chief Executive John H. Hammergren said in October that the company was "open to new partnerships and business models," brushing off speculation it could be in the market to buy a big U.S. drugstore chain, such as Rite Aid.

Earlier this month, McKesson completed its acquisition of German pharmacy company Celesio AG.

Shares of Rite Aid rose 3% to $6.10 in premarket trading, while McKesson stock, which closed at $175.60 on Friday, were inactive. Monday was a holiday in the U.S.

Write to Michael Calia at michael.calia@wsj.com

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