Drugstore.com and Medco Health Solutions Inc. have extended their online store partnership through 2018.

Drugstore.com, Medco Health Solutions, Medco Health Store, online store, alliance, partnership, Dawn Lepore, Tom Moriarty, over-the-counter medicines, consumer health products, pharmacy, BioScrip, Rite Aid, Russell Redman

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Drugstore.com extends e-store alliance with Medco

August 4th, 2010

BELLEVUE, Wash. – Drugstore.com and Medco Health Solutions Inc. have extended their online store partnership through 2018.

The two companies in November 2008 announced an alliance in which Medco would launch the Medco Health Store, an Internet store offering over-the-counter medicines and other consumer health products, with drugstore.com providing technical development and operation, consumer health product and OTC merchandising, fulfillment, distribution and customer care services.

The Medco Health Store went live in 2009 and has since built up a customer base of more than 1.4 million registered members.

"Our partnership strategy is a key driver of drugstore.com's growth and leverages our leadership in online merchandising and fulfillment in the health and beauty category," drugstore.com chairman and chief executive officer Dawn Lepore said in a statement. "Medco is a leader in the health care and pharmacy industries, and we are excited to be extending this relationship."

Drugstore.com added that besides extending the term of the relationship, the two companies have changed the economic arrangement to give Medco more flexibility in pricing and promotions, while ensuring drugstore.com's financial return. Both companies also aim to work together to maximize cost efficiencies in procurement and distribution.

"Medco's partnership with drugstore.com has enhanced the comprehensive health care and pharmacy services we deliver to our clients and their members," commented Tom Moriarty, general counsel, secretary and senior vice president of pharmaceutical strategies and solutions at Medco Health Solutions. "We look forward to our continued collaboration."

On Monday, drugstore.com said it closed the sale of its pharmacy business to BioScrip Inc., which is now the pharmacy services provider for the online retailer's customers. Drugstore.com previously had partnered with Rite Aid Corp. for pharmacy services.