The Weekly Roundup
Looks like they had a backup plan after all. After a long period of market speculation and substantial FTC scrutiny of the proposed deal, Walgreens Boots Alliance announced this week that it has scrapped the Rite Aid merger and will instead attempt to purchase nearly half of the Rite Aid stores at a price tag of $5.18 billion. The deal also leaves regional chain Fred’s, who had planned to buy nearly 1,000 Rite Aid stores, out in the cold. Fred’s stock price plummeted.
Pharma supply chain pundit Adam Fein told Bloomberg News that Rite Aid was “stuck in the middle” between the giants (Walgreens and CVS) and independents. The new deal will be reviewed by the FTC next week. Our own Tim Gallagher, a Minnesota pharmacist and president of Sterling Specialty Pharmacy, has previously commented on the potential impact of mergers among the larger entities in the industry. Greater volume is likely to result in lower generic prices and increased profitability for customers of Walgreens’ wholesaler: AmerisourceBergen.
Here are a few other stories that might be of interest:
- NCPA for the assist. National pharmacy group weighs in with amici curiae brief on Arkansas law that seeks to increase pricing transparency.
- Piloting a better mousetrap. FDA announces new protocol for green-lighting digital health tools.
- Check out these bright spots in the battle against opioid dependence.
- Begging the question. New genome sequencing technology raises new question: just because you can, should you?
Wishing you all a happy and safe Independence Day!
[Editor’s note:] Our inboxes are stuffed with newsletters and our coffee tables stacked with magazines and industry digests. I’m sure yours are, too. So we’ve decided to run a weekly sampling of interesting stories, issues coverage, and business ideas we come across each week. We hope you’ll share some of your favorites, too. Drop us a line at email@example.com.