Walgreens Profits, Sales Up As Attention Focuses On Pending Acquisition Of Rite Aid
However, scrutiny is already emerging regarding antitrust issues related to the deal, which would unite two of the nation's three biggest drug store chains. News outlets also examine how the Walgreens purchase of Rite Aid might impact consumers.
USA Today:
Walgreens Profit Up As Attention Turns To Rite Aid Deal
The parent company of pharmacy giant Walgreens posted increases in sales and profit in its fiscal fourth quarter as attention turns to the financial benefits and regulatory risk of the company's pending acquisition of U.S. rival Rite Aid. (Bomey, 10/28)
Reuters:
Cost-Cutting Helps Walgreens Beat Profit Estimates
Two influential U.S. senators called for close scrutiny of Walgreens Boots Alliance Inc's plan to buy Rite Aid Corp for $9.4 billion, a deal that would unite two of the three biggest U.S. drugstore chains. Walgreens Chief Executive Stefano Pessina said the company had analyzed the antitrust aspect of the deal but would not speculate on the number of drugstores it might need to divest in order to win regulatory approval. (10/28)
The Associated Press:
Walgreens, Rite Aid Combo To Spread Drugstore Health Kick
Walgreens will use its $9.41 billion takeover of rival Rite Aid to spread its philosophy on making drugstores destinations for customers looking to stay healthy or buy beauty products. The nation's largest drugstore chain also is expected to flex its beefed-up negotiating muscle to wring better deals from drugmakers and other suppliers. But experts say those discounts won't automatically trickle down to consumers. (10/28)
Los Angeles Times:
What Customers Need To Know About Walgreens' Takeover Of Rite Aid
Change is coming to local drugstores after Walgreens Boots Alliance Inc. said Tuesday it is buying rival Rite Aid Corp. for about $9.4 billion. The deal combines two of the nation's largest drugstore chains, helping them to better compete in the rapidly consolidating healthcare industry. Drugstore chains face increased competition from mail-order pharmacy services and pharmacies inside grocery store chains. (Masunaga, 10/28)
The Associated Press:
In Walgreens-Rite Aid Deal, Consumers May Not See Benefit
Walgreens will use its $9.41 billion takeover of rival Rite Aid, based near Harrisburg in Camp Hill, to spread its philosophy on making drugstores destinations for customers looking to stay healthy or buy beauty products. The nation's largest drugstore chain also is expected to flex its beefed-up negotiating muscle to wring better deals from drugmakers and other suppliers. But experts say those discounts won't automatically trickle down to consumers. In fact, customers may not see a huge effect on their wallets if the deal announced Tuesday goes through. But they will likely see some store closures or name changes and fewer brand choices after Walgreens Boots Alliance Inc. adds the nation's third-largest drugstore chain to its portfolio. (Murphy, 10/29)
In other industry news -
The Wall Street Journal:
Pharmacy’s Sales Tactics Disclosed
A mail-order pharmacy used by Valeant Pharmaceuticals International Inc. had a simple message for staffers charged with getting health insurers to pay up: Don’t take no for an answer. If a health insurer wouldn’t work with Philidor Rx Services LLC, the pharmacy instructed staff to try again using the identification number of a partner pharmacy to secure payment. “We have a couple of different ‘back door’ approaches to receive payment from the insurance company,” a Philidor training manual said. (Rockoff and Whalen, 10/28)