Katz Group-McKesson deal sets stage for greater shifts in Canadian market
WHAT IT MEANS AND WHY IT’S IMPORTANT — The move by Katz Group to shed its independent and franchise businesses marks a shift in the Canadian market and likely sets the stage for even more changes north of the border. And while it remains unclear just how the pharmacy retail landscape in Canada will look in the years ahead, what is clear is that the winds of change are blowing, and industry eyes will remain fixed on the Canadian market, perhaps now more than ever.
(THE NEWS: Katz Group to sell independent, franchise businesses to McKesson. For the full story, click here.)
As the article states, Katz Group Canada has signed a definitive agreement to sell its banner pharmacy business, Drug Trading, and its franchise pharmacy business, Medicine Shoppe Canada, to McKesson for about CAD $920 million in cash.
Katz Group stated that the sale to McKesson will enable the former to focus on its corporate-owned Rexall and Rexall/Pharma Plus store network. So as new CEO Frank Scorpiniti, who officially succeeded Andy Giancamilli on Feb. 2, settles into his new role and focuses on the core banner, industry members pretty much can bet on seeing even more changes down the road.
In fact, Katz Group has announced that its Rexall division has acquired Dell Pharmacies, an 18-store chain operating in southern Ontario with approximately $70 million in annual sales. The Dell stores will be integrated into the Rexall network.
The sale to McKesson also creates cash for the company potentially to go out and acquire another Canadian operator, as some have expected it might.
Meanwhile, Target unveiled an unconventional plan for how it will build a pharmacy presence in Canada. It will utilize a pharmacy franchise model for its stores north of the border, the first of which will open in March/April 2013. That strategy is different than in the United States, where Target operates its own in-store pharmacies.
While it remains unclear just how the pharmacy retail landscape in Canada will look in the years ahead, what is clear is that the winds of change are blowing and industry eyes will remain fixed on the Canadian market, perhaps now more than ever.
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Survey: Endocrinologists would prescribe Bydureon for 20% of patients
BURLINGTON, Mass. — Endocrinologists would prescribe a newly approved weekly treatment for Type 2 diabetes to one-fifth of their patients, a new survey showed.
Healthcare market research firm Decision Resources announced the results of a survey of endocrinologists in the United States who said they would prescribe Bydureon (exenatide), made by Amylin Pharmaceuticals and Alkermes, to 20% of their patients. But taking into consideration the reimbursement hurdles and competition that the drug could face, the firm said Bydureon probably would earn a 2.6% share of the Type 2 diabetes market by 2020.
"However, we expect Bydureon will displace Victoza (liraglutide) and will earn our proprietary gold-standard status for Type 2 diabetes in 2015," Decision Resources analyst Christine Helliwell said, referring to a competing drug made by Novo Nordisk. "Bydureon has competitive advantages in efficacy, safety, tolerability and delivery."
The Food and Drug Administration approved Bydureon on Monday. The drug, a long-acting version of the injected drug Byetta, was developed under a partnership between Amylin and Eli Lilly & Co. that started in 2002 but that the companies dissolved in November 2011 after Lilly formed a similar diabetes drug partnership with Boehringer Ingelheim.
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Teva launches generic schizophrenia, bipolar disorder drug
NORTH WALES, Pa. — Teva Pharmaceuticals has launched a generic version of a psychiatric drug, the company said Friday.
Teva announced the launch of olanzapine orally disintegrating tablets in the 5-mg, 10-mg, 15-mg and 20-mg strengths in blister packs of 30.
The drug is a generic version of Eli Lilly’s Zyprexa Zydis, used to treat schizophrenia and bipolar disorder.
Eli Lilly did make $65 billion on Zyprexa and they still expect to capture 20% of the US market as well as a billion year on Zyprexa XR.- Association Between Zyprexa and Hyperglycemia. There is concern Zyprexa,like other atypical antipsychotic drugs, has the potential to cause metabolic disorders, particularly hyperglycemia (excess sugar) and diabetes. Atypical antipsychotics cause the body to metabolize fat instead of carbohydrates, leading to insulin resistance to the excess carbohydrates. At the same time they promote fat accumulation.I was a patient back in 1996-2000 who was a subject of Eli Lilly's Zyprexa 'viva' Zyprexa' off label sales promotion.I was given it as an ineffective costly treatment for PTSD It gave me diabetes as a side effect.--Daniel Haszard