Walgreens fortifies its specialty pharmacy arm
DEERFIELD, Ill. — Walgreens on Thursday inserted another piece into its comprehensive healthcare offering, just in time for the PBM selling season, with the acquisition of BioScrip’s community specialty pharmacies.
Walgreens and BioScrip announced that they have entered into a definitive agreement under which Walgreens will acquire certain assets of BioScrip’s community specialty pharmacies and centralized specialty and mail-service pharmacy businesses for a total deal value of approximately $225 million.
“Together, BioScrip’s clinically focused community specialty pharmacies and access to additional limited distribution drug therapies, and Walgreens existing nationwide network of retail and health system pharmacies create a strong network of support for our core drug store business to provide specialty pharmacy solutions to our patients,” stated Greg Wasson, Walgreens president and CEO. “Many of our patients will benefit from expanded access to new and limited distribution drugs for chronic conditions, such as HIV, cancer and organ transplant. This acquisition also significantly expands our nationwide reach to an additional half-million patients with chronic and complex health conditions who have strong clinical relationships with their current BioScrip pharmacy.”
BioScrip’s community specialty pharmacy business is a national network with 30 locations in 16 states across the United States and the District of Columbia. In addition to acquiring those locations, Walgreens will acquire certain assets of BioScrip’s centralized specialty pharmacy business and traditional mail-service pharmacy business that dispenses prescriptions for Drugstore.com, which was acquired by Walgreens in June 2011, among others.
Walgreens currently anticipates the transaction will not have a material impact on its earnings per share in fiscal year 2012, and expects it to be modestly accretive in fiscal year 2013.
Completion of the transaction is subject to customary conditions, including satisfaction of regulatory requirements and other closing conditions. Walgreens plans to fund the acquisition with existing cash and anticipates the transaction will close by late April 2012. The transaction was unanimously approved by both companies’ boards of directors.
Sales rise, comps drop at Fred’s
MEMPHIS — Fred’s on Thursday said January sales rose 3% to $132.4 million, compared with the year-ago period.
Comparable-store sales for the retailer, however, declined 0.8%, compared with an increase of 2.1% in the same period last year.
"We were pleased to see strong customer traffic in January, together with increasing pharmacy script counts," Fred’s CEO Bruce Efird said. "We also witnessed a continued solid performance in pet and household supplies, two of our Core 5 departments. As in December, January sales were affected by unseasonably warm weather across our markets and the shifting of a month-end advertising circular."
During January, Fred’s opened six new stores and four pharmacies. There was one franchise store closing.
CBO: Government health spending to hit $1.8 trillion
WASHINGTON — A projection issued by the Congressional Budget Office concluded that healthcare spending in the United States would reach a substantial high.
Citing the aging population and rising costs, CBO said spending on the government’s major mandatory healthcare programs, such as Medicare, Medicaid and the Children’s Health Insurance Program, will reach $1.8 trillion over the next decade. That spending is expected to represent 7.3% of GDP in 2022, an increase of nearly 2 percentage points from its share this year. CBO also said mandatory spending is projected to climb from 13.3% of GDP in 2013 to 14.3% in 2022.
"If that rising level of spending is coupled with revenues that are held close to the average share of GDP that they have represented for the past 40 years (rather than being allowed to increase, as under current law), the resulting deficits will increase federal debt to unsupportable levels," CBO said. "To prevent that outcome, policy-makers will have to substantially restrain the growth of spending for those programs, raise revenues above their historical share of GDP, or pursue some combination of those two approaches."
If current laws remain unchanged, the federal budget deficit is projected to be $1.1 trillion for fiscal year 2012.
Click here for the full report.