Medtech Insight is part of Pharma Intelligence UK Limited

This site is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction

RITE AID RETAIL REVENUES CLIMB OVER 9% TO $786 MIL. IN FIRST QUARTER; PHARMACIA AB SALES UP 5% TO $307 MIL. WORLDWIDE AS RESTRUCTURING CONTINUES

Executive Summary

Revenues from Rite Aid's 2,355 retail chain drug units increased 9.4% to $785.7 mil. for the three months ended June 2, the Harrisburg, Penn.-based drug chain reported June 25. Same-store sales grew by 7.4% for the quarter. Rite Aid added 26 new store locations during the three months from March to June and closed 23 others for a net gain of three stores. Fiscal 1991 first quarter income from Rite Aid's retail drug operations rose 6.8% to $23.3 mil., an increase of $1.5 mil. from the year-earlier period. Corporate revenues at Rite Aid were 10.1% higher than in the comparable quarter of FY 1990, at $830.5 mil., with retail drug operations generating nearly 95% of all revenues. First quarter net earnings totaled $25.2 mil., up 3.4%. Pharmacia AB, a health care affiliate of AB Volvo that is being acquired by Kabi parent Procordia, reported a first quarter sales gain of 5.2% to $306.7 mil. worldwide for the first three months of 1990. Net earnings dropped 23.5% to $16.4 mil. The consolidation of Pharmacia and Kabi is progressing ("The Pink Sheet" May 7, T&G-13). On June 20, Jan Ekberg, the president of the new pharmaceutical company resulting from the merger of Kabi, Pharmacia LEO Therapeutics and Pharmacia Ophthalmics, which will be called Kabi-Pharmacia Pharmaceuticals, announced that "over a two-year period," the company intends to cut 1,300-1,500 employees and "slash costs by some" 550-600 mil. Swedish kroner (SEK). Some 500-600 employees affected by the cutbacks will be from outside Sweden. Also as an outcome of the merger process, AB Volvo Chairman Pehr Gyllenhammar was elected as chairman of Procordia AB on June 14. Other board members chosen for the reconfigured company include Volvo's Chief Operating Officer Christer Zetterberg, and former Pharmacia Chairman Bengt Samuelsson.

You may also be interested in...



Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth

Latest Headlines
See All
UsernamePublicRestriction

Register

PS017699

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel