PBIRx®
Intelligent Solutions in Pharmacy Benefits
12 Wheelers Farms Road, Milford, CT 06461
(888) 797-2479
Intelligent Solutions in Pharmacy Benefits
12 Wheelers Farms Road, Milford, CT 06461
(888) 797-2479
Walgreens has finally received approval to acquire 1,932 Rite Aid stores, three distribution centers and inventory for $4.375 Billion in cash. This acquisition will leave Rite Aid with 2,600 stores and thus, be one of the three remaining nationwide chain pharmacies together with CVS and Walgreens. Walgreens will now be able to negotiate with drug manufacturers for lower drug costs, providing competition for CVS
The Rite Aid store purchases will begin in October and should be completed in the Spring of 2018 followed by rebranding those stores to Walgreens. Most of the stores to be purchased are located in the Northeast and Southern United States. As a result, Walgreens will have close to 10,000 locations (CVS has more than 9,600 stores) and expects to save about $300 Million annually through cost cuts over the next four years. Walgreens also owns Duane Reade pharmacies .
It will be interesting to watch what happens to Rite Aid in the future as their stock plummets. The deal does include the option for Rite Aid to join the Walgreens group purchasing agreement for discounts on generics, which should help them to compete with the other chain pharmacies.
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PBIRx has been exclusively providing intelligent solutions to clients in the management of pharmacy benefit costs since 1993. With a staff that includes IT personnel, actuaries, financial analysts, clinical pharmacists, attorneys, HIPAA Compliance Officers and many more experts, PBIRx’s mission is to create optimal health care outcomes while minimizing overall health care costs. For more information, please visit www.pbirx.com or call (888) 797-2479.
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