Chain Drug Review, April 29, 2019

Chain Drug Review April 29 2019 5 News Rite Aid reports mixed results for fourth quarter 100 basis points as a result of new generic introductions The number of prescriptions filled in same stores adjusted to 30 day equivalents increased 08 over the year ago period as the companys initiatives to drive script growth more than offset the benefit of the previous years strong flu season Prescription sales from continuing operations accounted for 659 of total drug store sales We continued generating critical momentum in key areas of our business while taking important steps to position Rite Aid for future growth said Rite Aid chief executive officer John Standley Despite a mild flu season we delivered our third consecutive quarter of samestore pharmacy sales and prescription count growth thanks to a record number of immunizations and other script growth initiatives We also increased Medicare Part D membership within our EnvisionRxOptions PBM which helped drive revenue growth and a 45 million increase in Pharmacy Services segment adjusted EBITDA As we begin our new fiscal year well look to build on this momentum as we continue transforming our business to better align with our new operational footprint and deliver greater value in the emerging value based care marketplace These efforts will include a strong focus on driving positive patient health outcomes evolving our front end business expanding our omnichannel capabilities and controlling costs to become a more efficient and profitable company Income tax expense in the current years fourth quarter was impacted by a 197 million charge related to an increase in the valuation allowance against the companys deferred tax asset while income tax expense in the prior years fourth quarter included a charge of 325 million related to the revaluation of the companys deferred tax assets as a result of the 2017 Tax Act Other items impacting the net loss from continuing operations include a LIFO charge in the current year in contrast to a LIFO credit in the prior year and a decline in adjusted EBITDA The company also announced that on March 21 Rite Aids stockholders approved a reverse stock split of the companys outstanding shares of common stock at a ratio of 1 for 10 1 for 15 or 1 for 20 Then on April 10 Rite Aids board approved the implementation of the reverse stock split at a ratio of 1 for 20 Once effective the reverse stock split would reduce the number of shares of common stock issued and outstanding from about 108 billion to around 54 million Rite Aid common stock was to begin trading on a splitadjusted basis on the New York Stock Exchange at the markets opening on April 22 Continued from page 1 Continued from page 1 Azar Burdensome DIR fees can be a challenge Continued from page 1 more level playing field that ultimately serves patients best But most important this is about the patients interests With any price concession reflected at the point of sale patients in Part D will now be paying based on a lower negotiated price saving in total billions each year in out of pocket costs Azar told the community pharmacists that he views DIR fee reform as fundamentally about reexamining how powerful interests have taken advantage of systems that were supposed to serve the patient Unfortunately the DIR situation is hardly the only place where thats occurred he said NCPA has joined the National Association of Chain Drug Stores and the National Association of Specialty Pharmacy to urge the Centers for Medicare and Medicaid Services to use its authority to reform pharmacy DIR fees as part of its proposed rule Modernizing Part D and Medicare Advantage to Lower Prices and Reduce Out of Pocket Expenses that would change the Part D program to lower beneficiary out of pocket costs by requiring that pharmacy price concessions are passed on to patients Ive been aware of the important role community pharmacists play in our health care system throughout my career Azar said When I was serving as deputy secretary of HHS in the 2000s and we rolled out Medicare Part D Secretary Michael Leavitt and I were well aware of and quite appreciative of the vital role community pharmacists played in educating seniors about the new benefit Fifteen years later we can say Part D has been a success But a changing prescription drug market has meant high prescription drug costs are still a top concern for seniors and Americans of all ages The experience at the pharmacy counter shapes what many Americans think about the health care system All of you know this well but it is striking just how the unaffordable and unpredictable costs of drugs can be one of the most stressful aspects of health care Alex Azar HHS Steve Collis AmerisourceBergen The retailer rang up a 21 same store pharmacy sales gain Distributor backs P O S discounts prepared with solutions that are fair efficient and transparent and thats why we believe we are best positioned to lead this transition The company said a distributor facilitated model would focus on Relationships built on trust Pharmaceutical distributors have strong service oriented relationships built on fairness and trust with their pharmacy customers and manufacturer partners These long standing relationships allow distributors to approach this reform in a fair and equitable way to meet the needs of all stakeholders and most important create a positive impact for patients Further since pharmacies are important customers for wholesalers it is in distributors best interest to ensure that pharmacies promptly receive P O S discounts In addition distributors have no role in setting the price of brand pharmaceuticals and do not influence formulary decision making Proven experience and infrastructure Distributors and manufacturers manage and maintain complex contract administration and chargeback systems today that enable manufacturer discounts for health system customers In 2018 alone AmerisourceBergen exchanged over 300 million chargeback transactions with manufacturers with greater than 99 successfully completed in three business days or less Extending this proven chargeback system to handle P O S discounts would be a natural evolution Commitment to transparency Chargebacks would be processed with full visibility and auditability by all stakeholders Further given the existing direct financial relationships with both manufacturers and providers distributors could facilitate chargebacks through adjustments to their accounts payable to manufacturers and accounts receivable from pharmacies resulting in cashless transactions To further operationalize pharmaceutical distributors would directly or indirectly from their customers secure the requisite chargeback detail from the P O S claims and provide an efficient and effective process for manufacturers to make pharmacies whole meeting or exceeding the mandatory 14 day prompt pay requirement Kaminsky takes reins at McKesson Rx unit IRVING Texas Kirk Kaminsky has been named president of McKesson Corp s U S Pharmaceutical and Specialty Solutions USPSS business He reports to McKesson chief executive officer Brian Tyler Kaminsky had been president of the McKesson Specialty Provider Organization a division of USPSS where he led a team responsible for a broad suite of provider solutions These included drug purchasing clinical and operational software and analytics practice management services and clinical trials across the companys specialty provider base including the U S Oncology Network Kirk is a special leader versed in both strategy and operational excellence He understands the complexities of the health care landscape and our customers needs inside and out Hes incredibly patientfocused and a terrific people leader said Tyler His vision experience and leadership will help us continue to serve our customers and business partners while expanding our service offerings and market leadership Kaminsky has been a McKesson executive since 2003 when he joined the companys Corporate Strategy and Business Development group He subsequently ran the U S Pharmaceutical packaging business and was integral to the companys growing presence in the oncology space He served as president of the oncology network and was responsible for its financial and operational support he also led the overall strategy in support of the networks vision of improving patient outcomes and quality of life and advancing the future of cancer treatment by taking a leadership role in value based care Im very excited about this opportunity Kaminsky said McKessons set of strategic assets positions us well to drive meaningful value across the health care ecosystem Im also humbled and honored to lead this team This team of professionals is dedicated to operational excellence working with integrity and accountability and meeting our customers needs Before joining McKesson Kaminsky was with Bank One Corp where he was responsible for setting and executing payment strategies across the commercial and retail bank