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UNITED STATES
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

December 23, 2004
Date of Report (Date of earliest event reported)

CONNETICS CORPORATION

(Exact name of Registrant as specified in its charter)
         
Delaware
(State or Other Jurisdiction
of Incorporation)
  0-27406
(Commission File No.)
  94-3173928
(IRS Employer Identification No.)

3290 West Bayshore Road, Palo Alto, California 94303
(Address of principal executive offices, including zip code)

(650) 843-2800
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



 


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Item 1.01 Entry into a Material Definitive Agreement.
SIGNATURES


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Item 1.01 Entry into a Material Definitive Agreement.

     On December 23, 2004, Connetics Corporation entered into a Core Distribution Agreement with McKesson Corporation. Under the agreement, Connetics has agreed to pay McKesson a fee in exchange for certain product distribution, inventory management, return goods processing, and administrative services.

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.

         
  CONNETICS CORPORATION
 
 
  By:   /s/ Sanjiv S. Dhawan    
    Sanjiv S. Dhawan   
    Vice President, Corporate Counsel   
 

Date: December 23, 2004