SAN FRANCISCO — McKesson Corp. has been selected by the Department of Veterans Affairs to continue as its prime pharmaceutical supplier.

McKesson said late Wednesday that the two-year agreement calls for the distributor to supply all of the VA’s medical centers and outpatient clinics, as well as the VA’s consolidated mail outpatient pharmacies (CMOPs).

The VA runs the nation’s largest integrated health care system, according to McKesson.

"We are extremely pleased to have been selected by the Department of Veterans Affairs to continue as its primary pharmaceutical supplier," commented John Hammergren, chairman and chief executive officer of McKesson. "Our track record for driving substantial financial efficiencies while exceeding service levels is why government and commercial customers continue to choose McKesson. We are confident in our ability to meet the VA’s growing needs over the term of our relationship, and in the process create significant value for the VA and for McKesson’s shareholders."

As part of the contract award, McKesson will continue to supply pharmaceuticals to more than 700 locations, including more than 270 medical centers, as well as the VA’s seven CMOPs. The initial two-year contract includes options for up to three, two-year extensions.