Senate designates October as National Medicine Abuse Awareness Month

BY Michael Johnsen

 WASHINGTON — The Senate on Wednesday passed a resolution naming October as National Medicine Abuse Awareness Month. The resolution was sponsored by Sens. Diane Feinstein, D.-Calif., and Chuck Grassley, R-Iowa, and urges communities to carry out programs and activities to educate parents and youth of the potential dangers associated with medicine abuse.

“While over-the-counter and prescription medicines are safe and necessary when used properly, too many teens are abusing these drugs to get high," stated Gen. Arthur Dean, chairman and CEO of the Community Anti-Drug Coalitions of America. "That’s why we commend the U.S. Senate for passing this important resolution.” 

Over the course of October, CADCA coalitions across the United States will be holding events to educate their communities about the dangers of medicine abuse and to discuss solutions to the problem. "These grassroots efforts can spur a nationwide dialogue about prescription and over-the-counter drug abuse in communities and among families across the country," Dean said.

CADCA is a partner of the Consumer Healthcare Products Association’s StopMedicineAbuse campaign to increase parental awareness of teen abuse of OTC cough medicines containing dextromethorphan. According to the National Institute on Drug Abuse’s 2011 Monitoring the Future Survey, approximately 5% of teens have abused these medicines — sometimes as much as 25 times the recommended dose — to get high.

“Over-the-counter cough medicine abuse is a behavior that often goes undetected by parents," CHPA president and CEO Scott Melville said. "The mission of our StopMedicineAbuse campaign is to educate parents about this issue and to encourage them to talk to their teens and to safeguard their medicines. We thank the Senate for bringing medicine abuse to the national forefront so that we can all work together to raise awareness."

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Former P&G exec joins Orabrush board of directors

BY Antoinette Alexander

PROVO, Utah — Tongue cleaner manufacturer Orabrush has added Shekhar Mitra, former Procter & Gamble SVP global prestige and beauty and corporate innovation, to its board of directors.

Under his leadership, P&G saw the creation and development of a number of successful consumer products, such as Crest Whitestrips, Crest ProHealth, Aleve Analgesic, Prilosec, and Old Spice Clinical Strength, among others. To date, Mitra has been awarded more than 50 patents and was part of P&G’s Global Leadership Council as well as its Top New Business Innovation Team where he was charged with creating renewed innovation strategies and a pipeline of ideas for new business development.

“It is difficult to find a company whose team has the right combination of genuine passion and innovative ideas for the new digital world, but I feel like I definitely have found that with Orabrush,” Mitra said. “This team is poised to change the way that brands market and advertise online, and I am honored and excited to help them find new ways to build on the incredibly strong foundation they have already laid.”

Initially, difficulties in reaching its consumer base and selling its patented tongue cleaner through traditional marketing channels prompted Orabrush to develop its inventive “reverse marketing model,” which has helped the company cultivate an online fan base through the use of YouTube videos. After nearly three years, the company has amassed more than 48 million channel views and is ranked as the one of the top subscribed sponsor channels on YouTube — just behind brands like Apple and Old Spice. Orabrush has transformed its online support into worldwide distribution at more than 30,000 retail locations.

“Moving forward, I see Orabrush continuing to reinvent the way that brands reach and engage with consumers, and we are working to create an infrastructure that can support that growth and expansion of our model,” Orabursh CEO Jeff Davis said. “Shekar has made a name for himself as an innovation strategist and creative organization leader. He has a proven track record of enabling breakthrough category creating innovations. Our team will benefit greatly from his wealth of knowledge and breadth of experience, and we are all thrilled to have the opportunity to work with him.”


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Rite Aid looks to retain ESI patients, provide ‘superior customer experience’

BY Alaric DeArment

CAMP HILL, Pa. — With the dispute between Walgreens and Express Scripts over, one of the biggest challenges for Rite Aid will be retaining the customers it won over during the impasse.

That was the biggest message during a conference call between Rite Aid executives and Wall Street analysts Thursday morning as the company announced its second quarter 2013 results.

“We’re working really hard, and we’re going to do our best to keep all the patients we can,” Rite Aid COO Ken Martindale said. “So we feel good about what we’re going to do, and I hope we can retain a good portion of these patients.”

Doing that will mean “providing a superior customer experience,” as Rite Aid chairman, president and CEO John Standley put it. “I’m proud of the hard work that our entire Rite Aid team puts forth as we look to deliver a one-of-a-kind experience to our customers,” Standley said.

It also means more promotion of the 4,643-store chain’s Wellness+ loyalty card program, whose number of active members has increased by 8% over second quarter 2012 to 25 million. Standley said members accounted for 74% of front-end sales, compared with 69% in second quarter 2012, as well as 68% of prescription sales. Later this year, the company is planning an "extensive" marketing campaign, which Standley said would promote the program’s "incredible value." According to the company, the number of gold and silver members has continued to increase, and those members show basket sizes about 40% to 50% larger than others, with about half of them shopping at Rite Aid stores weekly. "They’re clearly our best customers," Martindale said, adding that the company would introduce "additional concepts" over the next six to nine months.

The Wellness store format has seen expansion as well. The company remodeled 147 stores and now has a total of 570, with the expectation that it will have 780 completed by the end of fiscal year 2013. It also has trained 815 Wellness Ambassadors, staff who are specially trained and equipped to help customers select products and guide them to the pharmacy when needed. Standley said the company had continued to see a "positive impact" on front-end sales at the Wellness stores, compared with the older stores.

On the pharmacy side, where Rite Aid hopes to administer 2 million flu shots this season, compared with last season’s 1.5 million, the company got a significant boost thanks to the contractual dispute between competitor Walgreens and pharmacy benefit manager Express Scripts. Standley said maintaining the ESI customers the company gained would be a top priority, along with enrolling them in the Wellness+ program. "We continue to believe we received our fair share of new ESI scripts,”" CFO and chief administrative officer Frank Vitrano said.

Guggenheim Securities analyst John Heinbockel said the company’s $219 million EBITDA, while behind analyst projections of $225 million to $230 million, still represented a 19% increase over second quarter 2012, while first-quarter EBITDA increased by 16%. "Rite Aid’s [Q2] operating results were strong in absolute terms, rising 19%, but fell short of our recently-raised and consensus expectations largely due to higher SG&A expense dollars," Heinbockel wrote. "We would focus more on the absolute performance."

Sales for the quarter were $6.2 billion, compared with $6.3 billion in second quarter 2012, the decrease stemming primarily from store closings and a decrease in pharmacy comps due to a 750-basis point reduction from new generic introductions, though same-store prescriptions grew by 4%. Same-store sales were flat compared with last year, including a 1.4% increase in front-end comps and a 0.7% decrease in pharmacy comps. Net loss for the quarter was $38.8 million, compared with $92.3 million in second quarter 2012. The company attributed the narrowed losses to increased EBITDA, decreases in LIFO, store closings and impairment and depreciation and amortization charges. The company also updated its fiscal 2013 guidance, expecting sales between $25.1 billion and $25.4 billion in fiscal 2013, with same-store sales ranging from a 1% decrease to a 0.25% increase over fiscal 2012, the reduced guidance stemming from a projected 650-basis point negative impact on pharmacy comps from introductions of new generic drugs and reimbursement rate pressure.


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G.Froste says:
Dec-20-2012 10:38 am

The dispute puts Rite Aid under pressure but they are still hanging on because they want to provide superior customer experience in the future. watauga river fishing

S.HAND says:
Sep-20-2012 04:03 pm

If Rite Aid wants to fight to Keep these customers they need to recognize to stress, pressure, and burden they have expected their personnel to assume as they reduce hours to the pharmacies while watching the script numbers grow. Customers are waiting longer and more errors are bing made because less does not mean more for the bottom line.

Sep-20-2012 01:06 pm

I think your sales units might be off. Do you mean billions instead of millions?