US Pharm. 2008;33(9):68.
CVS Caremark to Acquire
Longs Drug Stores
Woonsocket, RI &
Walnut Creek, CA -- CVS
Caremark Corporation and Longs Drug Stores Corporation have entered into a
definitive agreement under which CVS Caremark will acquire 521 Longs retail
drug stores in California, Hawaii, Nevada, and Arizona as well as its
prescription benefits management subsidiary, Rx America, for $71.50 per share
in cash for a total purchase price of $2.9 billion, including the assumption
of net debt. Following the completion of the purchase, CVS Caremark will fill
or manage more than 1.2 billion prescriptions per year and operate
approximately 6,800 drug stores in 41 states and the District of Columbia. The
transaction is subject to review under the Hart-Scott-Rodino Act and is
expected to be completed in the fourth quarter of 2008.
Despite Increases, Health
Care Costs Continue to Trend Down
Chicago, IL -- Although
a survey of more than 70 leading health care insurers representing more than
100 million insured individuals found that health care costs are projected to
raise employers' contributions by double digits, according to Aon Consulting
Worldwide, the increase represents the lowest trend rate increase since the
study began in 2001. The results revealed that HMOs are expected to experience
a 10.6%, increase, POS plans a 10.5% increase, PPOs a 10.7% increase, and CDH
plans a 10.5% increase. According to John Zern, Aon's director of U.S. health
& benefits practice, "While the medical trend rate is still more than twice
the consumer price index, it is encouraging to see that health care cost rate
increases are continuing to slow down." It appears that prescription drug
costs will follow a similar pattern. According to the survey, prescription
drug costs are expected to increase 9.2%, which is slightly lower than the
9.5% trend rate of one year ago.
Lawmakers Call for
Overhauling FDA
Washington, DC -- Rep.
John Dingell (D, Mich) and Sen. Chuck Grassley (R, Iowa) want to overhaul the
FDA by giving it broader powers that include the ability to levy fines, order
drug recalls, and restrict drug-industry advertising. According to The Wall
Street Journal, the congressmen's recommendations are based on a series of
adverse events that occurred during the past year, including deaths related to
contaminated Chinese-made blood thinners and cases of salmonella linked to
jalapeño peppers. Other drug-related FDA safety issues include controversy
over popular prescription drugs like Chantix and Vytorin, both of which have
been called into question, suggesting that the agency was too lax in enforcing
its safety and efficacy standards. According to the lawmakers, restructuring
the FDA should "build a much taller wall between the agency and the industry
it regulates."
Jewel-Osco Launches
Discount Prescription Program
Melrose Park, IL
-- Following in the
footsteps of several other chain drug stores, Jewel-Osco, a company that
operates in-store pharmacies in grocery stores in Illinois, Iowa, and Indiana,
launched its own brand of discount pharmacy program called Prescription Plus.
The new pharmacy loyalty program rewards frequent pharmacy customers with
special discounts on future grocery purchases. Customers will receive a 10%
discount coupon after every five prescriptions filled at one of the company's
pharmacies when using their Jewel-Osco Preferred Card. While some restrictions
apply, the company says that new, transferred, and refilled medication orders
count toward earning the discount, which can be redeemed at the grocery
checkout. The program will be available at all 184 Jewel-Osco locations.
Grocery stores without in-store pharmacies also will honor the 10% discount
coupon.
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