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  • Debt-ridden Rite Aid files for bankruptcy, will close more stores

    Debt-ridden Rite Aid files for bankruptcy, will close more stores

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    Drugstore chain Rite Aid Corp. filed for bankruptcy Sunday, as it faces billions of dollars of debt related to opioid lawsuits.

    In a statement Sunday night, Rite Aid
    RAD,
    -16.81%
    said it will close some “underperforming” stores and announced Jeffrey Stein as its new chief executive and chief restructuring officer. Interim CEO Elizabeth Burr will remain on the company’s board.

    The bankruptcy filing had been expected for months, and the Wall Street Journal reported in August that Rite Aid was more than $3.3 billion in debt, due largely to hundreds of lawsuits related to its distribution of opioid painkillers. The bankruptcy filing stays pending litigation against the company.

    Earlier this month, the New York Stock Exchange warned Rite Aid that it was “no longer in compliance” with the exchange’s minimum pricing and valuation standards, and gave it six months for the stock to regain compliance. Rite Aid shares have plunged about 80% year to date.

    Rite Aid said Sunday that lenders will provide $3.45 billion in financing for the chain to continue operating through the chapter 11 bankruptcy process.

    “With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy,” Stein said in a statement. “In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on — now and into the future.”

    Rite Aid said it would work to minimize the effect of store closures on its customers so there is no disruption of services, and will transfer affected workers to different locations when possible.

    Rite Aid has about 2,100 stores and employs around 47,000 people. It has closed more than 200 stores in the past couple of years.

    Rite Aid also said it had reached a deal for pharmacy benefit-solutions company MedImpact Healthcare Systems Inc. to acquire its Elixer Solutions business. A price for the transaction was not disclosed.

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  • Debt-ridden Rite Aid files for bankruptcy, will close more stores

    Debt-ridden Rite Aid files for bankruptcy, will close more stores

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    Drugstore chain Rite Aid Corp. filed for bankruptcy Sunday, as it faces billions of dollars of debt related to opioid lawsuits.

    In a statement Sunday night, Rite Aid
    RAD,
    -16.81%
    said it will close some “underperforming” stores and announced Jeffrey Stein as its new chief executive and chief restructuring officer. Interim CEO Elizabeth Burr will remain on the company’s board.

    The bankruptcy filing had been expected for months, and the Wall Street Journal reported in August that Rite Aid was more than $3.3 billion in debt, due largely to hundreds of lawsuits related to its distribution of opioid painkillers. The bankruptcy filing stays pending litigation against the company.

    Earlier this month, the New York Stock Exchange warned Rite Aid that it was “no longer in compliance” with the exchange’s minimum pricing and valuation standards, and gave it six months for the stock to regain compliance. Rite Aid shares have plunged about 80% year to date.

    Rite Aid said Sunday that lenders will provide $3.45 billion in financing for the chain to continue operating through the chapter 11 bankruptcy process.

    “With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy,” Stein said in a statement. “In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on — now and into the future.”

    Rite Aid said it would work to minimize the effect of store closures on its customers so there is no disruption of services, and will transfer affected workers to different locations when possible.

    Rite Aid has about 2,100 stores and employs around 47,000 people. It has closed more than 200 stores in the past couple of years.

    Rite Aid also said it had reached a deal for pharmacy benefit-solutions company MedImpact Healthcare Systems Inc. to acquire its Elixer Solutions business. A price for the transaction was not disclosed.

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  • Ozempic and other weight-loss drugs boost pharmacy sales at Rite Aid

    Ozempic and other weight-loss drugs boost pharmacy sales at Rite Aid

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    Rite Aid Corp. said Thursday that its fiscal first-quarter pharmacy sales got a boost from a new class of drug.

    Pharmacy sales, which rose 3.4% from a year ago, were boosted by higher sales of Ozempic and other GLP-1 receptor agonists, which are used to treat Type 2 diabetes and obesity.

    The higher sales did not translate into profit, however.

    “As the cost of these drugs is also high, the impact of the increase in volume of these drugs on our gross profit dollars is minimal,” Rite Aid Chief Financial Officer Matthew Schroeder told analysts on the company’s earnings call, according to a FactSet transcript.

    Still, the company
    RAD,
    +2.96%
    cheered investors by raising its full-year revenue guidance due to the sales bump from Ozempic and other high-dollar GLP-1 drugs. It now expects revenue of $22.6 billion to $23 billion, ahead of the FactSet consensus of $22.3 billion.

    Ozempic, Wegovy and Rybelsus, which are made by Novo Nordisk
    NOVO.B,
    +0.17%

    NOVO.B,
    +0.17%    ,
    and Mounjaro, which is made by Eli Lilly & Co.
    LLY,
    +1.34%    ,
    have become so popular in the U.S. that supplies have at times run short and the U.S. Food and Drug Administration has been forced to warn patients against using knockoff versions.

    The drugs are administered by injection and mimic the effects of GLP-1, a gut hormone that can help control blood-sugar levels and reduce appetite. GLP stands for glucagon-like peptide.

    Ozempic, Rybelsus and Mounjaro have been approved by the Food and Drug Administration for treatment of Type 2 diabetes, while Wegovy is approved for people with obesity and for certain people with excess weight combined with weight-related medical problems. 

    Last year, more than 5 million prescriptions for Ozempic, Mounjaro, Rybelsus or Wegovy were written for weight management, up from 230,000 in 2019, according to data and analytics firm Komodo Health.

    Obesity drugs could be a $54 billion market by 2030, up from $2.4 billion in 2022, Morgan Stanley said in a report last year. Reports of people who take GLP-1 drugs seeing improvements in addictive behaviors such as smoking and drinking have lately amplified interest in the medications.  

    For more, read: The dark side of the weight-loss-drug craze: eating disorders, medication shortages, dangerous knockoffs

    Drug companies, including Lilly and Pfizer Inc.
    PFE,
    -0.32%    ,
    are now working to develop treatments in the form of pills that could be more convenient alternatives to the injectables.

    See now: Weight-loss drugs in development aim to replace injections with pills

    Rite Aid’s overall numbers surprised on the upside, as its loss was narrower than expected and revenue beat the consensus estimate.

    For more, see: Rite Aid’s stock soars 7.5% after company surprises with earnings that are less bad than feared

    Eleanor Laise contributed.

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  • Rite Aid stock slides 11% premarket after company posts bigger-than-expected Q2 loss

    Rite Aid stock slides 11% premarket after company posts bigger-than-expected Q2 loss

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    Rite Aid Corp. stock
    RAD,
    +7.16%
    slid 11% in premarket trade Thursday, after the pharmacy retail chain posted a wider-than-expected loss for its fiscal second quarter as it booked goodwill impairment charges on its pharmacy services segment as well as charges for higher facility exit and store closures. The company had a net loss of $331.3 million, or $6.07 a share. for the quarter to Aug. 27, wider than the loss of $100.3 million, or $1.86 a share, posted in the year-earlier period. Adjusted per-share loss came to 63 cents, ahead of the loss of 50 cents forecast by FactSet analysts. Revenue fell to $5.901 billion from $6.113 billion a year ago, but was ahead of the $5.773 billion FactSet consensus. “As we look to the second half of the year, we expect continued pressure on consumer spending and supply chain challenges,” CEO Heyward Donigan said in a statement. “At the same time, we are ready to meet a high demand for immunizations, while driving continued strong performance at Elixir and further SG&A expense reductions.” The company is sticking with revenue guidance for fiscal 2023 of $23.6 billion to $24.0 billion, but is expecting a bigger loss — of $520.3 million to $477.3 million. Shares have fallen 52% in the year to date, while the S&P 500
    SPX,
    +1.97%
    has fallen 22%.

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  • RAD Stock Price | Rite Aid Corp. Stock Quote (U.S.: NYSE) | MarketWatch

    RAD Stock Price | Rite Aid Corp. Stock Quote (U.S.: NYSE) | MarketWatch

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    Rite Aid Corp.

    Rite Aid Corp. engages in the ownership and management of retail drug stores. It operates through following segments: Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment includes branded and generic prescription drugs, health and beauty aids, personal care products, and walk-in retail clinics. The Pharmacy Services segment offers transparent and traditional pharmacy benefit management for insurance companies, employers, health plans, and government employee groups. The company was founded by Alex Grass on September 12, 1962 and is headquartered in Camp Hill, PA.

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