Former Walgreens EVP named Rite Aid president, COO
CAMP HILL, Pa. — Rite Aid on Thursday named Kermit Crawford president and COO. Crawford, prior to serving as a retail and healthcare adviser and consultant for New York City-based Sycamore Partners, enjoyed a long career with Walgreens, most recently as EVP and president of pharmacy health and wellness.
"Kermit is a highly experienced retail pharmacy industry executive with exceptional leadership capabilities," stated John Standley, chairman and CEO Rite Aid. "This is an especially important time for Rite Aid as we move forward as a stand-alone company within the retail chain drug and healthcare industries and I am extremely pleased to have such an innovative and well-respected senior executive joining our Rite Aid leadership team as we move forward to successfully drive our business."
During his more than 30 years with Walgreens, Crawford held a wide range of store operations and senior management positions, including responsibility for the company's pharmacy services, which included its pharmacy benefit management services. When he retired from Walgreens in 2014, Crawford was executive vice president and president of Walgreen's pharmacy, health and wellness division, where he was responsible for all aspects of strategic, operational and financial management for the division.
Crawford also serves on the board of directors for Allstate and LifePoint Health. And he is on the Board of Councilors of the University of Southern California School of Pharmacy.
Also Thursday morning, Rite Aid posted $7.7 billion in revenues for the second fiscal quarter ended Sept. 2, representing an adjusted net loss of $15.6 million, or $0.01 per diluted share and adjusted EBITDA of $213.3 million, or 2.8% of revenues.
"While our performance for the quarter reflects a challenging reimbursement rate environment and the effects of an extended merger and asset sale process, securing regulatory clearance for the amended asset sale agreement with Walgreens Boots Alliance gives us a clear path forward to realize the benefits of the transaction and implement our plans to deliver improved results," Standley said. "As we work to complete the asset sale, which will reduce our leverage and provide greater financial flexibility to invest in our business, we'll also focus on generating momentum for our business by meeting the health and wellness needs of our customers and patients while delivering an outstanding experience in our stores."
Revenues for the quarter were $7.7 billion compared to revenues of $8 billion in the prior year's second quarter, a decrease of $350.9 million or 4.4%. Retail Pharmacy Segment revenues were $6.3 billion and decreased 3.4% compared to the prior year period primarily as a result of a decrease in same store sales and reimbursement rates. Revenues in the company's Pharmacy Services Segment were $1.5 billion and decreased 8.7% compared to the prior year period, due to an election to participate in fewer Medicare Part D regions.
Same-store sales for the quarter decreased 3.4% over the prior year, consisting of a 4.6% decrease in pharmacy sales and a 0.9% decrease in front-end sales. Pharmacy sales included an approximate 189 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, decreased 1.8% over the prior year period due in part, to exclusion from certain pharmacy networks that Rite Aid participated in the prior year. Prescription sales accounted for 67.8% of total drug store sales, and third party prescription revenue was 98.3% of pharmacy sales.
In the second quarter, the company opened 1 store, relocated 1 store, remodeled 54 stores and expanded 1 store, bringing the total number of wellness stores chainwide to 2,532. The company closed 17 stores, resulting in a total store count of 4,507 at the end of the second quarter.
Jean Coutu in advanced talks to be acquired by Metro
MONTREAL — Industry consolidation continued in the Great White North as the Jean Coutu Group could soon be part of Canada’s third-largest grocery chain. The company announced Wednesday that it was in advanced talks with Metro, which operates in Quebec and Ontario, regarding a potential combination agreement.
Under the terms of a non-binding letter of intent dated Aug. 22, the company would be acquired for $24.50 per share, paid 75% in cash and 25% in Metro shares.
The Coutu family has indicated that it intends to support the proposed acquisition, the companies said. At midday Tuesday, Canadian regulators halted trading of the two companies’ stocks, BNN reported.
Metro, whose headquarters are in Quebec, operates nearly 600 food stores under the Metro, Metro Plus, Super C and Food Basics banners, as well as more than 250 drug stores under the Brunet, Metro Pharmacy and Drug Basics banners.
The Jean Coutu Group operates a network of 419 franchised stores under the PJC Jean Coutu, PJC Santé and PJC Santé Beauté banners. It also owns Quebec-based subsidiary generic drug maker Pro Doc. In 2017, the company’s retail sales were $4.47 billion.
AmerisourceBergen Foundation makes $100K-plus commitment to hurricane relief
VALLEY FORGE, Pa. — The AmerisourceBergen Foundation is stepping in to help with hurricane recovery experts. The nonprofit arm of AmerisourceBergen has committed more than $100,000 to communities impacted by Hurricanes Harvey and Irma.
The foundation has made more than $55,000 in targeted donations to regional relief support organizations in Houston and the Caribbean. Among the organizations receiving fundsare the International Medical Corps, Center for Disaster, Hurricane Irma Fund, Greater Houston Community Foundation and Austin Pets Alive! Each organization received a grant for focusing on building healthy communities and improving patient outcomes, with their efforts including medication deliver, mobile medical units, temporary housing and shelter for people and pets and long-term disaster relief needs.
The foundation also will match up to $100,000 in AmerisourceBergen associate and customer donations made to the American Red Cross.
“It’s heartbreaking to see the devastation in communities across the country and Caribbean — and as millions of people now face the daunting challenge of rebuilding their lives, we hope to bolster the ongoing relief efforts led by organizations on the ground,” said Gina Clark, AmerisourceBergen VP and chief communications and administration officer and AmerisourceBergen Foundation president. “In order to maximize our impact, we identified organizations that align with our core mission to improve the health and wellbeing of patient populations.”
AmerisourceBergen said that during natural disasters, the company uses its network of distribution centers, couriers and associates to ensure providers have access to pharmaceuticals. When Hurricane Harvey made landfall in Texas, the company identified alternate routes and such alternate delivery methods as airlifting supplies or using vehicles that could traverse high-standing water to deliver to hospitals in the Houston metro area. The company also offered advance ordering options to hospitals in Florida ahead of Hurricane Irma making landfall.
“For AmerisourceBergen, we are committed to ensuring patient access to vital pharmaceutical products every day. It is during these rare occasions, when something like an unprecedented natural disaster jeopardizes the critical and necessary medical deliveries that the role of a AmerisourceBergen — comes to the forefront,” AmerisourceBergen SVP distribution services Erin Horvath said.
In Puerto Rico, the company stocked its Puerto Rico distribution center with non-perishable food and pallets of water, as well as a refrigerated trailer that could store temperature-sensitive products for an extended amount of time in case the distribution center lost power. And in Houston, the company’s distribution center offered families access to an on-site shower and such emergency supplies as food, water, clothes and baby food.
“Successful supply chains rely on a trusted partner with a strong infrastructure in place to react to the unexpected. During these times, we are working around the clock to provide hospitals and healthcare providers with the products they rely on to treat those who are immediately impacted, as well as long-term patients with chronic or existing life-threatening conditions,” Horvath said.