Wendy future of retail top

PBM addition key for Rite Aid

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Rite Aid’s acquisition of PBM EnvisionRx was seen by industry observers as a big plus for the drug chain.

Fitch Ratings called the deal “a positive move as it will enable the company to expand its distribution channels by getting a foothold in the specialty and mail-order channels.”

“The acquisition is supported by Rite Aid’s improved credit metrics and cash flow over three years, enabling it to start making investments that will help strengthen its competitive positioning over the medium-longer term in the complex and evolving health care landscape, where there is increased demand for an integrated health and wellness offering,” Fitch stated.

In his Drug Channels blog, pharmacy supply chain expert Adam Fein said the addition of EnvisionRx positions Rite Aid to extend its geographical reach, steer more customers to its RediClinic health clinics (which recently began opening in its drug stores) and develop “its own Maintenance Choice program” a la CVS Health.

“With this transformative deal, Rite Aid is now explicitly building a mini-CVS Health. That’s not necessarily a bad thing,” Fein wrote in his blog post. He also raised the question of whether Rite Aid’s acquisition of a PBM will spur Walgreens Boots Alliance to make a similar move.


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