Retail News Breaks Archives
Drugstore.com closes sale of pharmacy to BioScrip
August 2nd, 2010
BELLEVUE, Wash. – Drugstore.com Inc. has finalized the sale of the assets of its DS Pharmacy Inc. subsidiary to BioScrip Pharmacy Services Inc., a subsidiary of BioScrip Inc., for about $10.5 million.
The online retailer said late Monday that the agreement with BioScrip, announced in early May, was closed on July 30.
Under the deal, drugstore.com sold its pharmacy business to Elmsford, N.Y.-based BioScrip, enabling it to become the pharmacy services provider for the online retailer's customers.
At the close of the sale, plans called for the companies to enter into a five-year marketing pact in which drugstore.com pharmacy customers will continue to order as they always have through the drugstore.com online store. BioScrip will pay drugstore.com a fee to continue to market the drugstore.com pharmacy, which will be served by BioScrip.
BioScrip has started providing pharmacy services to drugstore.com customers, the online retailer said Monday. The company noted that through the partnership, BioScrip will provide drugstore.com customers with an expanded specialty pharmacy offering, robust clinical resources and greater access to third-party insurance reimbursement, including Medicare.
Since its launch in 1999, drugstore.com had partnered with Rite Aid Corp. for pharmacy services.
When the agreement with BioScrip was announced, drugstore.com chief executive Dawn Lepore said the online retailer wanted to concentrate on its faster-growth businesses, namely its expanding family of microsites focusing on beauty, health and wellness, and vision care.
BioScrip provides retail and specialty pharmacy services along with pharmacy benefit management, infusion and other health care services. It operates a network of 33 retail community pharmacies in 17 states and the District of Columbia.