Drug Topics - September 8, 2008 - (Page 3) 3 Of Interest to Pharmacists CVS to buy Longs Drugs Fred Gebhart S ay goodbye to Longs Drugs. CVS CVS has been so successful with its Caremark is buying the Californiagrowth-by-acquisition strategy that anabased 521-store regional chain for $2.9 lysts largely yawned at the Longs purbillion. The acquisition gives the Woonchase. Moody’s Investor Service and Stansocket, R.I.-based CVS about 6,800 dard and Poor’s Ratings Service both stores in 41 states and nearly a third of affirmed CVS credit ratings. “The afTom Ryan the total U.S. prescription volume. firmation reflects the “This transaction provides tremendous benefits to fact that Longs will provide CVS Caremark by accelerating our expansion in very CVS with a meaningful presattractive markets and strengthening our geographic ence in California, in which reach,” CVS chief executive Tom Ryan said in announc- CVS is currently underpening the acquisition. CVS sales hit $85 billion last year. etrated, and CVS’ history of Longs reported $5 billion in revenue last year from successfully integrating acquisistores in California, Hawaii, Nevada, and Arizona. tions,” Moody’s analyst MargaThe company also owns pharmacy benefits manager ret Taylor wrote. Independent RxAmerica. “It was necessary to merge with a national pharmacies aren’t likely to feel player because increasingly we compete with national much pressure because CVS players,” Longs CEO Warren Bryant said. is taking over existing chain Ryan said the Longs name will disappear by the locations. AmerisourceBergen end of 2009 except in Hawaii. CVS will keep the said the acquisition will have Longs brand there, where it is seen as the homegrown little impact on drug wholesalchain. Walgreens opened its first Hawaii store in ers. ABC spokesman Michael 2007 and continues to expand. Kilpatric noted that CVS will Longs is CVS’s 10th acquisition in the past de- acquire Longs’ Amerisourcecade and the second major purchase in California. Bergen distribution contract The New England chain powered into California in along with other assets. He said the acquisition does 2006 by buying 700 Osco/Sav-On stores, then the not signal a round of industry consolidation. CVS is dominant pharmacy brand in Southern California. clearly buying into a major market, not trying to roll Longs is the dominant brand in Northern up smaller competitors. Analysts said Walgreens faces California. CVS also acquired 1,260 Eckerd stores the biggest challenge. It is now confronting another in 2004 and PBM Caremark in 2007. national chain with similar buying power. “Longs will provide CVS with a meaningful presence in California.” $2.9 BILLION
Table of Contents Feed for the Digital Edition of Drug Topics - September 8, 2008 Drug Topics - September 8, 2008 CVS to Buy Longs Drugs Medicaid Cuts Force Pharmacists to Make Tough Choices Drug Topics - September 8, 2008 Drug Topics - September 8, 2008 - Drug Topics - September 8, 2008 (Page 1) Drug Topics - September 8, 2008 - Drug Topics - September 8, 2008 (Page 2) Drug Topics - September 8, 2008 - CVS to Buy Longs Drugs (Page 3) Drug Topics - September 8, 2008 - Medicaid Cuts Force Pharmacists to Make Tough Choices (Page 4)
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