Rite Aid Reports Profit Drop, Cuts Next Full-Year Earnings Outlook
The third-largest drugstore chain says lower pharmacy reimbursements and its $2-billion purchase of pharmacy benefit manager EnvisionRx account for the fall. In other marketplace news, The Washington Post examines claims made by health apps.
The Wall Street Journal:
Rite Aid Profit Falls, And Company Cuts Outlook
Rite Aid Corp. said profit in its latest quarter plummeted as the drugstore chain integrated recently acquired Envision Pharmaceutical Services and recorded a loss on retired debt. Meanwhile, the Camp Hill, Pa.-based company further cut its earnings outlook for the year, reflecting sales trends and additional expenses stemming from the recent deal. (Beilfuss, 9/17)
Rite Aid Cuts Full-Year Forecasts Citing Low Reimbursements
Drugstore chain operator Rite Aid Corp (RAD.N) cut its full-year forecasts for total earnings and drugstore sales, citing lower pharmacy reimbursements and expenses related to its $2 billion acquisition of pharmacy benefit manager EnvisionRx. Rite Aid shares fell nearly 9 percent in morning trading on Thursday. Rising generic drug prices are hurting drugstore operators as insurers and pharmacy benefit managers have been slow in raising reimbursement rates for those drugs. (Ramakrishnan, 9/17)
The Washington Post:
Apps Are Making Health Claims. But They May Not Have The Science To Back Them Up.
There's an app for everything these days. Some smartphone apps claim to detect cancer, improve mental concentration, or even help you see better. But not all may have science that backs up their claims. On Thursday, the Federal Trade Commission went after Carrot Neurotechnology, the maker of an app that promised to improve users' vision. (Peterson, 9/17)