SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549


                           FORM 8-K

       Current Report Pursuant to Section 13 or 15(d) of
              the Securities Exchange Act of 1934


                        August 15, 1997
               (Date of earliest event reported)




                    McKESSON CORPORATION
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    (Exact name of registrant as specified in its charter)


     Delaware              1-13252                94-3207296
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(State or other       (Commission File       (I.R.S. Employer
jurisdiction of            Number)              Identification
incorporation)                                      Number)


McKesson Plaza
One Post Street
San Francisco, California                               94104
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(Address of principal executive offices)            (Zip Code)


                            (415) 983-8300
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     (Registrant's telephone number, including area code)














Item 5 - Other Events.


          As previously reported in the Company's Form 10-K
for its fiscal year ended March 31, 1997, a class action was
filed in the United States District Court for the Northern
District of Illinois by retail pharmacies against the Company
and numerous other defendants, including pharmaceutical
manufacturers and other wholesale distributors, alleging, in
essence, a conspiracy to fix the prices of brand name
pharmaceuticals sold to plaintiffs at artificially high,
discriminatory, and non-competitive levels, in violation of
the Sherman Act.  The plaintiffs specifically contend that the
wholesaler and manufacturer defendants are engaged in a
conspiracy to fix prices charged to plaintiffs and members of
the class above the price levels charged to mail order
pharmacies, HMOs and other institutional buyers.  The
plaintiffs seek remedies in the form of injunctive relief,
unquantified monetary damages (trebled as provided by law),
and attorneys fees and costs.

          On April 4, 1996, the Court granted the motion for
summary judgment filed by the Company and other drug wholesal-
er defendants and plaintiffs appealed.  On August 15, 1997,
the United States Court of Appeals for the Seventh Circuit
reversed the lower court's decision.

          The Company continues to believe it has meritorious
defenses to the allegations made against it and intends to
vigorously defend itself. In addition, the Company has entered
into a judgment sharing agreement with certain pharmaceutical
manufacturer defendants, which provides generally that the
Company (together with the other wholesale distributor
defendants) will be held harmless by such pharmaceutical
manufacturer defendants and will be indemnified against the
costs of judgments rendered against both wholesalers and
manufacturers, if any, in this and other similar actions, in
excess of $1 million in the aggregate per wholesale
distributor defendant.

                          SIGNATURES

          Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto
duly authorized.


                         McKESSON  CORPORATION
                         (Registrant)



Date: September 5, 1997


                         By:    /s/ Nancy A. Miller
                         Name:   Nancy A. Miller
                         Title:  Vice President and
                                 Corporate Secretary