Earlier this year, McKesson reported that in December it signed a new agreement with CVS to be the distribution partner for Target pharmacies, which CVS had recently acquired. McKesson's expanded agreement with Walmart reflects the closer relationships that drug distributors and pharmacy chains have formed in recent years amid changes in pharmaceutical pricing and procurement. In February 2014, McKesson and Rite Aid Corp. unveiled an expanded distribution pact that extended their existing agreement and included both generic and branded drugs. The new agreement runs to March 2019. Months later, in July 2014, McKesson announced a three-year extension to its distribution pact with CVS Caremark Corp. (now CVS Health), lengthening the time frame of their agreement to June 2019. Also in July 2014, the Red Oak Sourcing LLC generic drug joint venture of CVS and Cardinal Health Inc. went operational.