Rite Aid Stores To Close Or Be Sold Amid Second Filing For Chapter 11
The drugstore chain intends to sell customer prescription files and inventory as it closes its distribution centers and store locations. Meanwhile, manufacturers have increased imports and are starting to stockpile as the threat of President Trump's pharmaceutical tariffs looms.
AP:
What Customers Can Expect As Rite Aid Closes Or Sells All Its Drugstores
Rite Aid customers can expect their local store to close or change ownership in the next few months, as the struggling drugstore chain goes through another bankruptcy filing. The company plans to sell customer prescription files, inventory and other assets as it closes distribution centers and unloads store locations. Stores will remain open for now, but the company isn’t buying new inventory so bare shelves are likely become more common. (Murphy, 5/6)
More pharma and tech updates —
Axios:
Pharma Shipments Surge As Trump Tariff Threat Looms
President Trump's threat of pharmaceutical tariffs is driving a surge of exports of drugs and medical products from Europe to the U.S. as manufacturers look to build up stockpiles before duties hit. (Reed, 5/7)
Bloomberg:
Trump Drug Price Idea Could Cost Industry $1 Trillion: Lobbyist
The pharmaceutical industry estimates President Donald Trump’s new drug pricing proposal could cost drug companies as much as $1 trillion over a decade, its largest trade group is telling members of Congress. The idea, first floated last week by the White House as a way to help pay for the president’s tax cut plan, blindsided the pharmaceutical industry and has prompted a furious lobbying campaign. (Cohrs Zhang, 5/6)
Modern Healthcare:
DaVita's Javier Rodriguez Leans Into AI For Kidney Care
Providing kidney care is no longer about which company can open the most dialysis centers. Kidney care behemoth DaVita is investing in technology solutions to help its patients receive dialysis and kidney care at home if they choose, said CEO Javier Rodriguez. It’s part of the evolution of a nearly $13 billion company that formed 25 years ago and operates more than 2,500 dialysis centers in the U.S. (Perna, 5/6)
Stat:
Few Drugmakers Use A Newer Test For Contamination, Risking Horseshoe Crabs
Many large drugmakers are still using a decades-old test — derived from horseshoe crabs — as a go-to tool for detecting contamination in medicines and vaccines, rather than switching to a cheaper and equally effective alternative, according to a survey by environmental groups. (Silverman, 5/6)
