Chain Drug Review, July 9, 2018

Vol 40 No 10 www chaindrugreview com July 9 2018 Ahead of Aetna merger CVS names new exec team WOONSOCKET R I With its 69 billion buyout of Aetna on track to close later this year CVS Health announced the management team selected to lead the combined company Assuming the deal passes muster with antitrust regulators Our team thinks that the biggest opportunities to benefit our retail partners lie in category and chain differentiation Susan Smith Walgreens Lead Emerson Group We can always do better Aetna will operate as a stand alone business unit within CVS Health and be led by members of its current management team CVS said in a statement Were very excited to be taking this milestone step in the journey to combine our two great companies said CVS Health president and chief executive officer Larry Merlo The talent of both organizations is reflected in the management team that we are naming today and that will Delivering Better Health to All report to me as of the close of the transaction I look forward to working alongside this outstanding group of individuals as we take on the task of transforming the way health care is delivered in America engaging consumers with the care they need when and where they need it and making the patient and caregiver experience simpler and more affordable Management positions announced last month include the following business unit and shared services leaders Business unit leadership Jon Roberts will continue to serve as executive vice president and chief operating officer of CVS Health with operational oversight for CVS Pharmacy CVS Caremark and Omnicare Pharmacists Can Boost Vaccine Rates Page 9 Page 55 Karen Lynch president of Aetna will serve as executive vice president of CVS Health and president of the Aetna business unit Fran Soistman will continue to serve as executive vice president and head of government services for Aetna leading the Medicare Medicaid and Federal Plans businesses and reporting to Lynch Dr Alan Lotvin executive vice president of specialty pharmacy at CVS Caremark has been named executive vice president of transformation with oversight of the portfolio of business transformation initiatives for the combined company Richard di Benedetto will continue to serve as president of Aetna International Shared service leadership Shawn Guertin executive vice president chief financial officer and chief enterprise risk officer at Aetna will assume the position of executive vice president and chief financial officer at CVS Health In this role Guertin Larry Merlo CVS Health CVS rolls out delivery service WOONSOCKET R I CVS Pharmacy has expanded its prescription delivery service nationwide and made sameday delivery available in five new major markets The move makes CVS the first national retailer to make both pharmacy and front end delivery available chainwide The national launch of our prescription delivery service including the expansion of same day delivery in five new markets is delivering on our promise to make staying healthy simpler for every patient regardless of where they live says Kevin Hourican president of CVS Pharmacy Through a fully customized digital experience shoppers are now able to enjoy the convenience of CVS Pharmacy right at their doorstep The rollout of delivery from nearly all of our 9800 retail pharmacy locations nationwide represents another step forward for us in delivering innovative omnichannel solutions that help people on their path to better health Patients and customers can request delivery either by using the CVS Pharmacy app or by Court rules on sales tax WASHINGTON States can collect sales tax from online sellers even if those companies dont have a physical presence in the state the Supreme Court ruled last month in a case with far reaching implications for online commerce The physical presence rule has long been criticized as giving out of state sellers an advantage the court said in its 5 4 ruling Each year it becomes further removed from economic reality and results in significant revenue losses to the states The courts decision overturned a ruling from 1992 in Quill Corp v North Dakota that allowed online retailers to skirt sales tax collection responsibilities in states where they dont have a physical presence Brick and mortar retailers and others have long argued that the 1992 law was established with catalog sales in mind and before the meteoric rise of internet retailing State governments entered the fray asserting that since the sales tax is a long established way for state governments to pay for the services their constituents demand its unfair to allow some retailers to skip it Quill established two different sets of rules governing the collection of sales taxes that left traditional retailers badly disadvantaged against their online peers Todays ruling sets the stage for states to begin leveling the playing field for brickand mortar retailers by treating online transactions in the Rite Aid introduces drug disposal units CAMP HILL Pa Rite Aid Corp last month unveiled the companys first in store medication disposal unit at the Rite Aid pharmacy in Lemoyne Pa as part of its overall strategy of combating drug abuse Rite Aid plans to install 100 medication disposal units in selected pharmacies over the next year The units offer individuals a free safe and convenient way to dispose of expired or unwanted prescription and over the counter medications helping to reduce the chances of accidental or intentional misuse Rite Aid president and chief operating officer Kermit Crawford was joined on June 1 by Rep Scott Perry R Pa and other dignitaries at the Lemoyne location to highlight the significant role the disposal boxes play in the companys overall strategy to fight the growing epidemic Rite Aid is committed to doing its part to address this serious issue affecting our country and the availability of medication disposal units inside select Rite Aid pharmacies is an important next step in our comprehensive approach said Crawford Our pharmacists as medication experts are often asked for information on how to properly dispose of medication thats no longer needed so we are proud to be able to offer in store disposal and DisposeRx packets as solutions to our patients and customers he added Continued on page 4 Continued on page 4 Continued on page 6 Continued on page 6 WBA is listed on the Dow NEW YORK Walgreens Boots Alliance WBA late last month took its place alongside Boeing Merck Co Walmart and other large publicly traded U S companies that comprise the Dow Jones industrial average the stock index that tracks daily trading in 30 of the worlds best known blue chips General Electric Co was dropped to make room for WBA Todays change to the DJIA will make the index a better measure of the economy and the stock market David Blitzer managing director and chairman of the index committee that selects the Dows com Continued on page 4 Kermit Crawford Rite Aid