Monthly Archives: June 2012

Pharmacy Industry News: Pfizer pullout means some patients are missing out on drugs

Pfizer pullout means some patients are missing out on drugs

PATIENTS are missing out on urgent medicines because Australia’s biggest drug supplier has opted out of an industry-wide distribution system.

Patients suffering heart disease, mental illness and other conditions requiring immediate medication are in some cases waiting days for their drugs because of Pfizer’s less regular deliveries, pharmacists say.

Under the industry-wide system many pharmacies get up to two free deliveries a day of drug brands other than Pfizer. A Pfizer spokeswoman said the company provided five free deliveries a month, with critical products delivered free on the same business day ”wherever possible”.

Toorak pharmacist John Button said the delivery service was ”a lot slower” under the new system. NSW pharmacist Anthony Ai Nguyen said one of his patients ended up back in hospital, unable to get the prescribed Pfizer treatment to combat a worsening infection.

The Pharmacy Guild has a confidential agreement with Pfizer to monitor deliveries and improvements where necessary. A report commissioned by rival wholesalers argues that Pfizer’s move to become sole distributor of its products imperils the current distribution system, which is backed by $180 million in federal subsidies.

Pfizer is understood to has taken over distribution of its products to lock in long-term deals with pharmacies before several of its most lucrative drugs go off patent next year.

Growing Prescription Drug Shortages Alarm Falls Pharmacists

Last year, the number of newly reported prescription drug shortages in the United States hit a record total of 211.

Already during the first quarter of 2011, there have been 196 reported shortages and if the trend continues, the number of drug shortages will double those seen in 2010.

That was the alarming message presented at Community Memorial Hospital recently during a President’s Advisory Council meeting. Terry Audley, the hospital’s Pharmacy Clinical Supervisor and Mark Meranda, the hospital’s Outpatient Pharmacist, painted a disturbing picture of the situation for area business leaders who attended.

The list of drugs becoming harder to get include certain antibiotics, cancer, heart and high blood pressure medications such as Dyazide and Maxide. The latest high profile drug to be added to the list is the generic form of Adderall XR, used to treat attention-deficit hyperactivity disorder (ADHD) in children and adults.

“We order medications that we generally use day to day in the hospital that are unable to be supplied to us through our wholesalers because manufacturers are not supplying them to the wholesalers,” Audley said. “So we can’t get the drugs. There have been documented cases where people have died because they could not get the antibiotic they needed to treat a particular infection. There have been delays in treatment for cancer where some patients get an alternate cancer treatment protocol that may not be as effective because you can’t get the most effective drugs.”

Why the shortages?

There are multiple reasons in play. In some cases, a product is recalled because there are issues with sterility, contamination or poor manufacturing practices. In other cases, a drug is in short supply and there is a surge to find an alternative drug which then creates a shortage with the alternate medication. Sometimes pharmaceutical companies consolidate so, instead of having two companies that produce the product, now there’s only one. That cuts the supply in half.

Another big contributing factor is the global nature of the pharmaceutical industry.

“The pharmaceutical industry is more global now so a lot of raw materials may come from other parts of the world,” Audley explained. “Things can disrupt the supply chain like a hurricane, a tsunami, or an earthquake, so you can’t get the raw materials or even the final product into the United States to prepare the meds that we need. Sometimes pharmaceutical companies aren’t making enough money on a product so they just choose to stop making it.”

The line of communication, or lack thereof, between the drug makers and the pharmacists also creates problems.

“I think communication with providers is essential and that’s something we don’t have right now,” Meranda said. “If we could get communication like a drug company saying, ‘This is not a profitable drug for us. We’re trying to streamline our production and get rid of those products where we don’t see much market share’ – well, let us know a year or six months in advance so we can start to plan, so we can move patients over to another manufacturer or find another alternative for the patient.”

The prescription drug shortages are also causing a stir on Capitol Hill. On June 27, a bipartisan group of federal lawmakers urged the U.S. Department of Health and Human Services (HHS) to hold a public hearing on the matter. They are also urging passage of a U.S. Senate bill called the Preserving Access to Life-Saving Medicines Act which will increase the Food and Drug Administration’s authority to address the problem.

“The biggest issue that we see is that there is absolutely no authority in the FDA over these drug shortages,” Audley said. “There is no requirement that the drug companies alert the FDA of an impending shortage or that they’re going to stop preparing a drug. They may be the only company that makes it and they can just stop making it without any advanced warning to anyone. Really, it’s kind of a free-for-all.”

In the meantime, what can consumers do to enhance their chances of getting the medications they need?

“Be your own advocate, talk to your legislators who can give FDA more authority to require that companies that are sole providers of a drug are not be able to just decide to stop making it because it’s not profitable enough,” Audley said.

Consumers are also urged to stay in contact with their pharmacists.

“Your pharmacist should be talking to patients when you pick up your prescription and giving some form of consultation,” said Meranda. “Don’t wait until the last minute for your medications to run out before you call in your refill because it takes time to come up with alternatives.”

Pharmacist tells how to identify fake drugs shop

Caution: During your next visit to a pharmacy, ensure the premises’ licence is visible and that you get a receipt showing the name of the drug purchased.

Dr Jayesh Pandit, the head of the pharmacovigilance department at the Kenya Pharmacy and Poisons Board, on Wednesday asked Kenyans to take part in the fight against counterfeit drugs by buying from licensed pharmacies.

Pharmacovigilance is the department charged with creating awareness on medicine safety.

“Medicines should only be bought from licensed pharmacists, who wear badges branded by the Pharmacy and Poisons Board,” Dr Pandit said.

He was speaking on the sidelines of a two-day conference that began on Wednesday, and which seeks to discuss the risks that counterfeit medicines pose and develop action plans to address the problem.

The World Health Organisation defines counterfeit medicine as “medicine which is deliberately and fraudulently mislabelled with respect to identity and/or source”.

“Counterfeiting can apply to both branded and generic products and counterfeit products may include products with the correct ingredients or with the wrong ingredients, without active ingredients, with insufficient active ingredients or with fake packaging,” the global body warns.

China, India, Colombia, South America and Egypt are some of the sources of most of the world’s counterfeit goods.

In March, the Kenyan Association of Pharmaceutical Industry estimated that counterfeit pharmaceutical products accounted for approximately Sh9 billion in sales annually.

The conference that continues on Thursday at Nairobi’s Panafric Hotel has participants from Burundi, Rwanda, Madagascar, Kenya, Tanzania and Uganda.

Supreme Court sides with pharmaceutical industry in two decisions

Justices rule that generic drug makers cannot be sued by injured patients in most cases and that drug manufacturers have a 1st Amendment right to buy private prescription records to use for marketing purposes.
June 24, 2011|By David G. Savage, Los Angeles Times

The Supreme Court gave the pharmaceutical industry a pair of victories, shielding the makers of generic drugs from most lawsuits by injured patients and declaring that drug makers have a free-speech right to buy private prescription records to boost their sales pitches to doctors.

In both decisions Thursday, the court’s conservative bloc formed the majority, and most of its liberals dissented.

About 75% of the prescriptions written in this country are for lower-cost generic versions of brand-name drugs. Federal law requires the makers of brand-name drugs to label their products with FDA-approved warning information and to update the warnings when reports of new problems arise.

Pharmacy Industry News: Apple juice and allergy medicine don’t mix

The People’s Pharmacy: Apple juice and allergy medicine don’t mix

I know that grapefruit juice is a problem with my blood pressure pill felodipine. I wonder about other juices, like apple and orange juice. Will they affect this or my allergy medication fexofenadine? It is so hard to tell what is safe to eat or drink with your medicine.

Grapefruit juice can indeed cause problems with many medications, including felodipine (Plendil), simvastatin (Zocor) and atorvastatin (Lipitor). Blood levels can rise, and that may cause unanticipated side effects.

Other fruit juices may have the opposite effect on certain medications. Fexofenadine (Allegra) is an allergy medicine that might not work very well if taken with apple, orange or grapefruit juice. Such juices may dramatically reduce the absorption of fexofenadine. This could mean there is not enough medicine to relieve allergy symptoms for some people (Pharmacogenetics and Genomics, February).

Many people get in the habit of taking their medicine with juice. It probably is a better idea to take pills with water. This is especially true for antibiotics, blood pressure medicine and drugs to prevent organ-transplant rejection.

I have found a very helpful use for Burt’s Bees peppermint lip balm. My nose got really sore the last time I had a cold. Applying the lip balm to my nose and upper lip gave me instant relief. My nose healed within a couple of days.

Burt’s Bees Lip Balm has a beeswax base with no petroleum products. So far as we know, this type of short-term use should not pose any hazards.

We usually discourage people from using products with a petroleum jelly base in or near the nose, because we are concerned that inhalation of petrolatum might lead to lung inflammation in susceptible individuals.

I have been on thyroid medication for the past year. Last fall, I noticed my hypothyroid symptoms returning: fatigue, muscle cramps and stiffness after walking just a mile of my usual 3-mile walk. I also felt extremely cold, while others were comfortable.

When I saw my doctor and told him about my symptoms, he checked my thyroid levels and gave me a month’s supply of Synthroid to tide me over. I had been taking generic levothyroxine.

A measure of thyroid function, my TSH level, was 3.7 on the generic. On Synthroid, my TSH was 2.5, and all my symptoms disappeared even though the dosage is the same (50 micrograms). If there is such a difference from one brand to another, how can dosage be regulated properly?

The Food and Drug Administration maintains that levothyroxine formulations (Levoxyl, Synthroid, etc.) are identical. Physicians who specialize in treating thyroid disorders (The Endocrine Society) disagree. They worry that patients are put at risk when they are switched between brands or generics.

Supreme Court sides with pharmaceutical industry in two decisions

In both decisions Thursday, the court’s conservative bloc formed the majority, and most of its liberals dissented.

Pharmacists Choose Nature Made as the Leading VMS Brand for Sixth Year

Nature Made® is the leading choice of pharmacists in five key vitamin and supplement segments, according to a broad survey and ranking by Pharmacy Times, published in their OTC Guide, a supplement to the June 2011 issue. Nature Made is the # 1 Pharmacist Recommended brand for Letter Vitamins (A, B, C, D, and E), CoQ10, Omega-3/Fish Oil, Flax Seed Oil and Herbal Supplements.1

“Nature Made understands that quality is the keystone of trust for pharmacists and health professionals, and is proud to be the #1 pharmacist recommended vitamin and supplement brand once again across key vitamin segments,” says Mark Walsh, chief operating officer, Pharmavite. “Year after year, we aim to be the model against which all other dietary supplement companies are measured.”

For 40 years, Nature Made has been committed to a science-based approach, making only those dietary supplements that science proves are safe and effective, and in ensuring the superior quality we promise to our customers for each of the more than 150 products that we make. From ingredient sourcing, to industry-leading manufacturing practices, to third-party verification, Nature Made is responsible for making high-quality products that consumers and health care professionals can trust to deliver the nutrients they need.

“When it comes to choosing vitamins and supplements, it is important to look for brands that are recommended by credible experts,” says Suzy Cohen, RPh, author of “The 24-hour Pharmacist” and syndicated columnist. “As a pharmacist, I trust Nature Made because they ensure every product is made according to the FDA’s stringent manufacturing requirements, and also have many of their products verified by quality third-party organizations such as the United States Pharmacopeia.”

Pharmacy Industry News: Supreme Court sides with pharmaceutical industry in two decisions

Supreme Court sides with pharmaceutical industry in two decisions

In both decisions Thursday, the court’s conservative bloc formed the majority, and most of its liberals dissented.

Fierce Competition Prompts Changes for Rite Aid and Walgreen

The economic recovery seems to be having a positive effect on the Drug Stores sector. Same store sales rose for many companies during the most recent quarter. This was spurred by growth in pharmacy sales volumes as nearly the entire sector saw itself filling more prescriptions. Some generic introductions hurt total revenues, however. The Bedford Report examines the outlook for companies in the Drug Stores Industry and provides investment research on Rite Aid Corporation RAD
-0.42% and Walgreen Co.
WAG
+1.45% . Access to the full company
reports can be found at:

www.bedfordreport.com/RAD

www.bedfordreport.com/WAG

With fierce competition in the Drug Stores industry, companies are investing a great deal of money to bolster their product offerings as well as their in-store experience through re-models. All this is in hopes of attracting more customers to come buy similar products.

In the most recent quarter, Walgreen said that selling, general and administrative (SG&A) expenses skyrocketed more than 7 percent year over year to $4.2 billion. The company said that it opened or acquired 41 new drugstores (a net gain of 25 after relocations and closings) in the third quarter.

The Bedford Report releases equity research on the Drug Store Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Last week Rite Aid posted a net loss of $63.1 million in the first quarter of fiscal 2012 compared with a loss of $73.7 million in the year-ago period. During the company’s earnings call, Rite Aid CEO, John Standley said the drug store plans to fuel growth by increasingly administering the immunizations Americans used to receive from their personal physicians. Rite Aid expects to more than double its injections this fiscal year to some 1.5 million.

Express Scripts continues on long path to growth, analysts say

When Express Scripts Inc. got blindsided this week by the nation’s largest drugstore chain, Walgreen Co. — which publicly threatened to end their multibillion-dollar relationship — the episode marked an epic clash in the pharmaceutical industry.

Walgreen officials, in announcing they had canceled contract negotiations with the St. Louis-based pharmacy benefit manager, pronounced themselves ‘surprised” that Express Scripts had the temerity to drive such a hard bargain with “the largest retail provider in their pharmacy network.”

The reaction from Express Scripts? Whatever — customers can just take their Express Scripts benefit cards to competitors literally down the block. “On average, another pharmacy within the Express Scripts network is within one-half mile of a Walgreens pharmacy,” taunted a company release, while careful to also emphasize an interest in continuing talks.

Wall Street responded Tuesday by driving down Walgreen stock — while Express Scripts’ shares inched up, apparently unaffected. While such brinksmanship often characterizes such high-stakes negotiations, and some analysts believe a deal will be forthcoming, the dust-up nonetheless underscored the extent to which Express Scripts has penetrated the market after years of explosive growth. And yet investors believe the company has capacity to grow further still, even as the company matures into an established player.

“If there’s one thing that’s constant, our company is focused on growth,” said Larry Zarin, a senior vice president and chief marketing officer at Express Scripts.

For the second year in a row, Express Scripts is the Post-Dispatch’s top-performing publicly traded company in the St. Louis region, based on the newspaper’s analysis of revenue size and growth, return on capital and profit growth. It is the fourth time since 1992 that the company has claimed the distinction.

Express Scripts, which manages about 656 million prescriptions annually, posted $45 billion in revenue in 2010 and a profit of $1.2 billion — compared with $24.7 billion in revenue and $828 million in profit in 2009.

HURDLES AHEAD

Maintaining that upward trajectory remains a challenge. A new report by bond rating agency Moody’s Investors Service concluded that one of the biggest challenges facing the nation’s three largest pharmacy benefit managers — New Jersey-based Medco Health Solutions, Express Scripts, and Rhode Island-based CVS Caremark Corp. — is ‘stagnant to declining commercial insurance membership trends.”

According to Moody’s, other challenges faced by the industry include customer resistance on pricing and health care legislation.

Pharmacy benefit managers administer prescription drug benefits for employers, government agencies and health plans. They also help manage the amount of money their clients spend on drugs by encouraging employees to choose generic drugs, rather than brand-name medicines, and obtain these drugs via mail order (effectively skipping retail outlets such as Walgreens).

Moody’s praised Express Scripts’ financial flexibility but noted that the overall market for pharmacy benefit managers remains uncertain. United Healthcare indicated recently that it is exploring the efficiencies it might gain from “in-house” management of the pharmacy benefits of its $11 billion contract with Medco. Other health insurers, which are under mounting pressure to keep costs down, also may be considering the in-house option.

In the face of such challenges, Express Scripts seems determined to run lean. In a year of reorganization, the company laid off several hundred workers last year and shut down a prescription processing plant near Philadelphia. It opened a high-tech, heavily automated mail-order facility in northern St. Louis County. And like many other large companies, it has outsourced and sent offshore some of its operations.

Wall Street analysts remain upbeat about Express Scripts’ growth potential.

“For the next five years, the growth looks good — and near term, it’s pretty significant,” said Art Henderson, an analyst at Jeffries & Co. in Nashville.

Henderson and other financial analysts said that, although 2011 has provided a bit of a market lull, Express Scripts is well-positioned to exploit the pipeline of drugs whose patents will expire in the next few years — by providing lower-cost generic drugs instead of branded ones.

The company makes higher profits on generic drugs because it can negotiate lower rates from the multiple drugmakers that offer generic substitutes for branded medications.

The patent on Lipitor, a blockbuster anti-cholesterol drug, is due to expire in December; and patents for other top-selling drugs, such as Plavix, antidepressant Lexapro, and Singulair (an asthma drug) are due to expire next year.

Express Scripts’ profits on generics, however, could face incursions from government regulation. Some federal and state lawmakers have voiced the need for greater transparency from pharmacy benefit managers about their pricing schemes and acceptance of manufacturer rebates and discounts.

Express Scripts has received kudos from an industry trade association for its degree of transparency, but some lawmakers remain puzzled as to how exactly the company buys and sells prescription medications, how it chooses the drugs on its formularies, and from which kinds of transactions it reaps the largest profits.

Express Scripts spent about $1.9 million last year on federal lobbying activities about such issues as legislation, pricing, antitrust, Medicare payment rates, and generic versions of biotech drugs, according to records filed with the clerk’s office of the U.S. House of Representatives.

‘FLUSH WITH CASH’

Jeff Jonas, an analyst at Gabelli & Co. in Rye, N.Y., agreed that Express Scripts’ has “a bright future” via the generic drug pipeline. But he said the firm also may continue to grow through acquisitions.

“There are still deals out there, either traditional PBMs or something along the lines of specialty companies that manage biotech drugs,” Jonas said, “and their track record (for acquisitions) is pretty good.”

In the past, Express Scripts has been able to grow its business by expanding its existing operations and acquiring competitors including National Prescriptions Administrators Inc. (2002), Curascript (2004) and Priority Healthcare (2005).

In December 2009, Express Scripts purchased Indianapolis-based Wellpoint’s Next RX subsidiary for $4.68 billion.

“Express Scripts is a very strong cash generator. … They’re flush with cash, and they have good balance sheets,” said Helene Wolk, an analyst at Sanford C. Bernstein & Co. Inc. in New York. “They still have enough flexibility to do acquisitions if one presents itself.”

As one of the largest pharmacy benefit managers, it’s unclear whether the Justice Department would permit Express Scripts to acquire one of its chief rivals (or, for that matter, to be acquired by one of them). The nation’s top three PBMs control about 60 percent of the market. But the company could target a variety of other potential acquisitions.

With or without more acquisitions, Wolk said, it is likely that Express Scripts will experience a “robust growth swing of about 20 percent” in the next three to five years. “Express Scripts’ earnings have been stellar in the last few years,” Wolk said.

The company appears to want to build its business by becoming more competitive among larger employers. A substantial portion of the company’s revenue depends on its contract to manage pharmacy benefits for the military’s TriCare Program.

But analysts said Express Scripts has done well locking up long-term contracts with the Defense Department and Wellpoint.

The company is focused heavily these days on cost-cutting, reorganization and sending a portion of its information technology and customer support work to places like India and the Philippines.

“I can assure that we’re always trying to get more efficient,” Zarin said. “Our clients hire us to reduce costs, with no compromise to clinical outcomes. We are counted on to run lean and mean.”

Still, pharmacy benefit managers including Express Scripts are expected to gain more business as an additional 32 million Americans are insured under the health reform law.

Jeff Hall, the firm’s chief financial officer, said in a written statement that Express Scripts’ research and innovation into consumer behavior “translate into strong returns for shareholders and superior outcomes for our plan sponsors and patients.”

Later this year, the company plans to open its fourth headquarters building in northern St. Louis. “We are excited about further expanding our workforce in St. Louis,” Hall said.

D3 Names Christine Stoffel VP Business Development and Strategic Alliances

D3 LED, LLC (D3), the world’s leader in specialized LED digital display applications, announced today at the 2011 Sports and Entertainment Alliance in Technology Consortium in Los Angeles, CA the hiring of Christine Stoffel of Phoenix, AZ, as vice president, business development and strategic alliances. Ms. Stoffel will be responsible for identifying complementary technology products companies for revenue-generating partnerships in the sports, entertainment and retail-connected real estate markets, and growing the Company’s recently launched sports and entertainment brand, A2D3.

Stoffel joins D3 with more than 20 years experience leveraging innovative technologies to develop large scale business models that have dramatically improved customer experience and enterprise performance, and generated new revenue opportunities.

“Christine brings an impressive background in technology and management in the sports and entertainment arena to D3,” said Jason Barak, managing partner of D3. “She has delivered simultaneous mission-critical technology projects and her extensive experience designing and delivering competitive advantages and revenue opportunities will be a key asset to D3 as we continue on our aggressive growth track. Christine specializes in integrated technology connecting consumer experiences, brand awareness and return on investment.”

Prior to joining D3, Stoffel was the vice president of information technology for the Arizona Diamondbacks where she was instrumental in turning the ballclub into one of the more technologically forward sports franchises in the sports industry. Her achievements included brokering unique partnerships with technology stalwarts such as Dell, Nortel and Microsoft; and building a stable core network infrastructure in the ballpark that allowed the D-backs to deploy interactive wireless solutions for their fans.

Additionally, Stoffel has served as the vice president, information technology & strategic operations for the Phoenix Coyotes, overseeing all technology systems for the Coyotes, Arizona Sting lacrosse team and Jobing.com Arena. She has held numerous positions with other Phoenix-based companies, including senior IT manager/acting director with Caremark RX, the nation’s premier integrated pharmacy services provider.

Stoffel also founded the Sports and Entertainment Alliance in Technology Consortium (S.E.A.T.), now in its fifth year, which offers technology, marketing, sales and operations executives innovative networking and communication channels to focus on everyday and industry-unique challenges facing sports teams, along with creating a foundation to tackle the latest technologies and newest challenges through the cooperation and the leveraging of shared knowledge and strategies.

“We’re thrilled to announce Christine’s hire at the year’s S.E.A.T event where the A2D3 brand has such a strong presence,” said Barak.

Stoffel holds memberships in the Association of Women in Sports Careers, Computer Security Institute Association, Business and Professional Women Foundation, National Association of Female Executives and the Women in Technology Association. She sits on the boards of the Luxury Suite Directors, the National Advisory Council for Ticketing Technologies in Sports and Entertainment, and she is a member of the Phoenix CIO Forum.

Muscat Pharmacy Group reinstates its support for MedHealth and Wellness 2011 Exhibition

For the second time since 2009, Muscat Pharmacy, representing major international pharmaceutical companies such as Bayer, Boehringer Ingelheim, Bristol Meyers Squibb, GlaxoSmithKline, Johnson & Johnson, Merck AG, Novartis Pharma and Pfizer, to name a few, will bring in its various principal companies to showcase its wide spectrum of pharmaceuticals and other healthcare products. Established in 1968, the company now boasts of 66 retail outlets and 33 pharmacies. Its participation in MedHealth & Wellness 2011 reflects Omanexpo’s commitment to raise the quality of healthcare in Oman. Muscat Pharmacy was MedHealth’s biggest exhibitor in 2009.

MedHealth & Wellness made its debut in 2009 as a pioneering health and wellness show in Oman, and has served as a launchpad for other organized healthcare exhibitions, conferences and fora in the Sultanate. For the first time this year, it will feature a high-profile conference that will be held concurrently with the exhibition on September 27 and 28. To date, nine highly acclaimed local and international speakers have already expressed their commitment to share their expertise and views on various relevant topics revolving around the prevention and treatment of lifestyle diseases such as cancer, diabetes, asthma, and cardiovascular illnesses, healthcare marketing, medical tourism, hospital management technology, and healthcare best practices. Among the international speakers who have given their confirmation are Diabetes Association Qatar executive director Dr. Abdulla Al Hamaq, National & International Health Research Initiative Chairman Dr. Adnan Hammad from Michigan, USA, and Private Hospitals Association (PHA) Jordan Chairman Dr. Awni Al-Bashir. The conference will culminate in session-sponsored programs.

Omanexpo’s general manager Nasser Diab said, “We are happy to welcome another valuable addition to the growing number of exhibitors and supporters for MedHealth & Wellness 2011. We would like to thank Muscat Pharmacy for their unwavering commitment to support MedHealth & Wellness, the same way they did in 2009. This is proof of the value and significance of our show, both as a beneficial sourcing, networking, and instructional platform and as an avenue for support of the government’s initiatives to boost healthcare in Oman.”

“Again, the continuous efforts by the government to improve healthcare services, backed by its recent announcement of the 260-million-dollar worth of health projects underway is encouraging for us as an exhibitions organizer and for the sector as well,” he added.

MedHealth & Wellness Exhibition & Conference 2011 is supported by the Ministry of Health, the Oman Chamber of Commerce & Industry, National Association for Cancer Awareness, Private Hospitals Association of Jordan, and Oman Heart Association with Agility as its Official Logistics Partner. Huron Consulting Group is one of its Conference Session Sponsors.

Omanexpo is one of the regions’ leading organizers of high-profile, industry-focused trade and consumer exhibitions and conferences. It is a member of UFI-The Global Association of the Exhibition Industry and the International Association for Exhibitions and Events (IAEE) and is recognized as the only exhibitions management company in Oman with the highest number of UFI-approved events.

Pharmacy Industry News: Supreme Court sides with pharmaceutical industry in two decisions

Supreme Court sides with pharmaceutical industry in two decisions

Reporting from Washington— The Supreme Court gave the pharmaceutical industry a pair of victories, shielding the makers of generic drugs from most lawsuits by injured patients and declaring that drug makers have a free-speech right to buy private prescription records to boost their sales pitches to doctors.

In both decisions Thursday, the court’s conservative bloc formed the majority, and most of its liberals dissented.

But in a 5-4 decision, the high court said this same legal duty to warn patients of newly revealed dangers did not extend to the makers of copy-cat generic drugs.

Justice Clarence Thomas reasoned that the warning labels were the responsibility of the brand-name makers and the Food and Drug Administration. He said that because generics were just copies, their makers could not be sued for inadequate warnings if those warnings didn’t exist on the original.

Thomas said the federal regulatory law trumped the state liability law in this instance and therefore shielded the generic makers. “We acknowledge the unfortunate hand” that was dealt to the patients whose suits were dismissed Thursday, he wrote in his majority opinion.

The patients, Gladys Mensing and Julie Demahy, developed tardive dyskinesia, a severe neurological disorder, after taking metoclopramide, a generic form of the drug Reglan for digestive problems, including acid reflux. They sued, alleging that the drug maker failed to warn them of the danger of taking this drug for more than 12 weeks. Studies had suggested a potentially increased risk of the condition — and Reglan was eventually required to carry a “black box” warning about it. That wasn’t the case at the time.

In tossing out their claims in Pliva Inc. vs. Mensing, Thomas put the blame on “the special, and different, regulation of generic drugs.”

They are supposed to be copy-cat versions of the original, he said, so the makers cannot be sued for failing to give patients new and different warnings as they develop.

But the dissenters, led by Justice Sonia Sotomayor, said the generic drug maker should have alerted the FDA to the danger and then updated its warning label. “This outcome makes little sense,” she wrote. Justices Ruth Bader Ginsburg, Stephen G. Breyer and Elena Kagan agreed.

A consumer rights lawyer said the ruling stripped many Americans of an important legal right. “Three out of four patients just lost the right to sue” if they use a generic drug and suffer complications for which they were not warned, said Louis Bograd, counsel for the Center for Constitutional Litigation. These patients “appear to be left without any legal remedy.”

In the second decision, the court by a 6-3 vote struck down a Vermont law that barred pharmacies, drug makers and others from buying or selling prescription records from patients for marketing purposes. Vermont’s physicians had sought passage of the law, arguing that their prescriptions were intended for private use of patients and should not become a marketing tool.

Drug makers buy this data to gear their sales pitches to physicians. Several data-mining firms have made a billion-dollar business out of buying and selling the prescription data to drug makers and researchers.

Writing for the court, Justice Anthony M. Kennedy said that “information is speech,” and that under the 1st Amendment, the government usually cannot restrict speech because it does not approve of the message. “If pharmaceutical marketing affects treatment decisions,” he said, it does so because doctors find it persuasive.

Maine and New Hampshire have adopted similar laws, in part to deter drug makers from pressing doctors to prescribe newer and more expensive brand-name drugs.

Dissenting were Breyer, Ginsburg and Kagan. Breyer called Vermont’s measure “a lawful governmental effort to regulate a commercial enterprise.” The case was Sorrell vs. IMS Health Inc.

Sen. Patrick J. Leahy (D-Vt.), chairman of the Senate Judiciary Committee, criticized the decision for having “overturned a sensible Vermont law that sought to protect the privacy of the doctor-patient relationship.”

Express Scripts continues on long path to growth, analysts say

“If there’s one thing that’s constant, our company is focused on growth,” said Larry Zarin, a senior vice president and chief marketing officer at Express Scripts.

Express Scripts, which manages about 450 million prescriptions annually, posted $45 billion in revenue in 2010 and a profit of $1.2 billion — compared with $24.7 billion in revenue and $828 million in profit in 2009.

HURDLES AHEAD

According to Moody’s, other challenges faced by the industry include customer resistance on pricing and health care legislation.

Wall Street analysts remain upbeat about Express Scripts’ growth potential.

“For the next five years, the growth looks good — and near term, it’s pretty significant,” said Art Henderson, an analyst at Jeffries & Co. in Nashville.

The company makes higher profits on generic drugs because it can negotiate lower rates from the multiple drugmakers that offer generic substitutes for branded medications.

‘FLUSH WITH CASH’

In December 2009, Express Scripts purchased Indianapolis-based Wellpoint’s Next RX subsidiary for $4.68 billion.

But analysts said Express Scripts has done well locking up long-term contracts with the Defense Department and Wellpoint.

The company is focused heavily these days on cost-cutting, reorganization and sending a portion of its information technology and customer support work to places like India and the Philippines.

Still, pharmacy benefit managers including Express Scripts are expected to gain more business as an additional 32 million Americans are insured under the health reform law.

Later this year, the company plans to open its fourth headquarters building in northern St. Louis. “We are excited about further expanding our workforce in St. Louis,” Hall said.

Independent Pharmacies Upset Over State Employees’ Prescription Drug Plan

Connecticut’s independent pharmacists, whose numbers have significantly dwindled in the past two decades, are warning that an impending state policy that would require state employees to buy most prescription drugs by mail could force many of them out of business.

At least one, the owner of a 60-year-old drug store in Storrs, is blaming the policy for the decision to close his shop. He said he believes the change could have wiped out his business.

“I knew we were going to lose so many patients,” said Naufel Tajudeen, a pharmacist and the owner of Storrs Drug. “Once my suppliers knew, they started dropping my credit limit. July 1 would have been way too late to close.” Tajudeen had to lay off the store’s four full-time workers and 10 part-time employees.

Storrs Drug, which depends on state employees for nearly 70 percent of its prescription business, may be the first “mom and pop” drug store to close as a result of the policy, and more could follow. There are about 160 independent pharmacies in the state, down from 400 in the 1990s, said Marghie Giuliano, executive vice president of the Connecticut Pharmacists Association.

Pharmacy Industry News: US Stocks Post Fourth-Straight Gain As Worries Over Greece Ease

US Stocks Post Fourth-Straight Gain As Worries Over Greece Ease

U.S. stocks closed sharply higher Tuesday, notching a fourth-consecutive day of gains, as investors bet Greece will take appropriate actions toward averting a sovereign-debt default.

The Dow Jones Industrial Average closed up 109.63 points, or 0.91%, at 12190.01. The Standard & Poor’s 500-stock index gained 17.16 points, or 1.34%, to 1295.52. Both indexes have risen for four consecutive days and six out of the last seven.

Economically sensitive sectors such as materials, tech and energy were among the biggest gainers. Consumer staples was the only sector to end the session in negative territory.

The technology-heavy Nasdaq Composite rose 57.60 points, or 2.19%, to 2687.26, its biggest point gain since Sept. 1. The index has added 2.7% over the last two days, its biggest two-day gain since April 21.

Investors anticipated Greek Prime Minister George Papandreou will survive a crucial vote of confidence in parliament late Tuesday.

The confidence vote, which is expected at 5 p.m. ET, comes just days after a mass protest over new government cutbacks shook Greece’s political establishment.

“If Greece is going to fall apart, the last thing that would be strong would be the euro,” said Jim Meyer, chief investment officer at Tower Bridge Advisors. “I think the market’s accepting that this is a done deal and it would be a big surprise if it’s not.”

The euro strengthened on the day, trading above $1.44.

Greece is expected to get its next quarterly installment of bailout money as long as the country’s parliament passes a contentious package of budget measures. European finance ministers also showed modest signs of progress toward a broader agreement for a bigger package of aid to Greece for coming years.

Deutsche Bank strategist Alan Ruskin is worried the market may be too optimistic that the confidence vote will pass.

For stocks, “the pop on a yes will be small compared to the cataclysmic blow on a no,” he said in a research note. “Market technicals are then widely primed for a stumble down the elevator shaft, if any of Greece’s confidence vote, next week’s ‘budget’ bill, or July’s ‘implementation’ bill for 2011 tax measures take a wrong turn.”

Investors also await the conclusion of the Federal Reserve’s two-day policy-setting meeting, which kicked off Tuesday. The central bank’s policy statement and Chairman Ben Bernanke’s news conference are slated for Wednesday.

“The Fed has been so transparent that I’d be shocked if anything comes from the meeting other than what we’ve already heard,” said Chip Cobb, senior vice president at Bryn Mawr Trust Asset Management. “Never say never, but the probability of that at this stage of the game is very unlikely.”

Greek optimism overshadowed U.S. housing data showing sales of existing homes fell last month to the lowest level in six months.

Among stocks in focus, shares of Walgreen slumped $1.90, or 4.2%, to $43.28, after the largest U.S. drugstore chain said negotiations to renew its contract to be part of the Express Scripts pharmacy provider network were unsuccessful. The news came as Walgreen said its fiscal third-quarter earnings jumped 30% amid continued sales growth.

Best Buy authorized a new $5 billion stock-repurchase program and raised its quarterly dividend by 7%, prompting shares to rise 84 cents, or 2.7%, to 32.28.

Barnes & Noble’s fiscal fourth-quarter loss widened on higher expenses, though the bookseller posted higher revenue thanks to surging online sales. Shares dropped 1.20, or 6%, to 18.94. The nation’s largest bookstore chain said it wouldn’t offer an earnings or sales estimate for its new fiscal year because of the takeover offer made last month from Liberty Media Holding Corp.

Susquehanna Bancshares agreed to acquire Pennsylvania bank Tower Bancorp in a cash-and-stock deal valued at about $343 million, continuing a trend of consolidation among the state’s regional banks. Susquehanna shares dropped 64 cents, or 7.7%, to 7.70; shares of Tower Bancorp soared 6.43, or 32%, to 26.80.

Alliance Data’s LoyaltyOne Business Signs Long-Term Renewal With Top-Ten AIR MILES® Sponsor, The Jean Coutu Group; Quebec’s Drugstore Retail Leader and One of Canada’s Leading Pharmacy Chains

Alliance Data Systems Corporation ADS
+3.52% , a leading
provider of loyalty and marketing solutions derived from transaction-rich data, announced that its Canadian coalition loyalty business has signed a long-term renewal with The Jean Coutu Group (PJC) Inc. CA:PJC.A
+1.48% .
The multi-year agreement provides for The Jean Coutu Group to remain a sponsor in LoyaltyOne’s AIR MILES® Reward Program as the exclusive pharmacy retailer in Quebec. Jean Coutu has been a sponsor in the program since 2003.

The Jean Coutu Group is the franchisor of one of the leading pharmacy chains in Canada with 389 franchised stores in Quebec, Ontario and New Brunswick under the banners PJC Jean Coutu, PJC Clinique, PJC Jean Coutu Sante and PJC Jean Coutu Sante Beaute. For Fiscal 2011, revenues were (CDN) $2.598 billion.

The AIR MILES® Reward Program is Canada’s premier coalition loyalty program, with approximately two-thirds of Canadian households actively collecting reward miles. AIR MILES collectors earn reward miles at more than 100 leading brand-name sponsors representing thousands of retail and service locations across Canada. AIR MILES reward miles can be redeemed for more than 1,200 different rewards, such as travel, movie passes, entertainment attractions, and electronic merchandise.

“A significant sponsor in our loyalty coalition, Jean Coutu’s continued focus on ensuring marketing concepts are industry leading and meet customer expectations has provided it with a competitive advantage in the retail pharmacy category and continues to have a positive impact on revenues and customer loyalty,” said Bryan Pearson, president of LoyaltyOne. “With anticipated increases in consumer spending on pharmacy, health-related and beauty products, we will continue to work closely with Jean Coutu to design and implement targeted consumer marketing initiatives that grow network stores sales and increase wholesaler revenue and reward miles issuance.”

“Not only does the AIR MILES Program allow us to attract customers and ensure their loyalty, but it is also a source of information on our customers and their purchasing profiles,” said Alain Lafortune, executive vice president, Purchasing and Marketing, The Jean Coutu Group. “This strategic marketing tool allows us to differentiate ourselves through targeted marketing initiatives but also to adapt our strategies in accordance to the real and unique purchasing profiles of our customers.”

About The Jean Coutu Group

The Jean Coutu Group is one of the most trusted names in Canadian pharmacy retailing. The Company operates a network of 389 franchised stores in Canada located in the provinces of Quebec, New Brunswick and Ontario under the banners of PJC Jean Coutu, PJC Clinique, PJC Sante and PJC Sante Beaute, and employs more than 18,000 people. Furthermore, as of December 2007, the Jean Coutu Group owns Pro Doc Ltd (“Pro Doc”), a Quebec-based subsidiary and manufacturer of generic drugs. The Company also holds a significant interest in Rite Aid Corporation (“Rite Aid”) a national chain of drugstores in the United States with nearly 4,700 drugstores in 31 states and the District of Columbia.

About Alliance Data

Alliance Data® ADS
+3.52% and its combined businesses is North America’s largest and
most comprehensive provider of transaction-based, data-driven marketing and loyalty solutions serving large, consumer-based industries. The Company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today’s most recognizable brands. Alliance Data helps its clients create and increase customer loyalty through solutions that engage millions of customers each day across multiple touch points using traditional, digital, mobile and other emerging technologies. Headquartered in Dallas, Alliance Data employs approximately 8,500 associates at more than 50 locations worldwide.

Alliance Data is a leading provider of marketing-driven credit solutions, and is the parent company of Epsilon®, a leading provider of multi-channel, data-driven technologies and marketing services, and LoyaltyOne®, which owns and operates the AIR MILES® Reward Program, Canada’s premier coalition loyalty program. For more information about the company, visit our web site, www.AllianceData.com , or you can follow us on Twitter at www.Twitter.com/AllianceData .

Alliance Data’s Safe Harbor Statement/Forward Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “project” and similar expressions as they relate to us or our management. When we make forward-looking statements, we are basing them on our management’s beliefs and assumptions, using information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these forward-looking statements are subject to risks, uncertainties and assumptions, including the anticipated effects of the CARD Act, potential effects of the Epsilon data incident, and those discussed in our filings with the Securities and Exchange Commission.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements contained in this presentation reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We have no intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this presentation regarding Alliance Data Systems Corporation’s business which are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s Annual Report on Form 10-K for the most recently ended fiscal year. Risk factors may be updated in Item 1A in each of the Company’s Quarterly Reports on Form 10-Q for each quarterly period subsequent to the Company’s most recent Form 10-K.

Next-Generation Pharmacist™ Awards Program Announces 2011 Finalists

Parata Systems and Pharmacy Times have announced the finalists for the second annual Next-Generation Pharmacist awards. The 2011 program, honoring pharmacists who define the future of the industry across a wide range of practice settings, attracted nearly 350 nominations from across the country.

This year’s finalists include pharmacist innovators, student pharmacists, and pharmacy technicians across 11 distinct categories. The program introduced the “Long-Term Care Pharmacist of the Year” and the “Military Pharmacist of the Year” categories in 2011.

A panel of esteemed judges—pharmacy thought leaders in their own right—chaired by Pharmacy Times Editor-in-Chief, Fred M. Eckel, RPh, MS, selected three finalists for each category, with four finalists in the Lifetime Achievement Category as a result of a tie. These finalists represent a true cross-section of the industry—from large chain retailers and independent pharmacies to military health clinics and educational institutions in 23 different states.

One winner from the pharmacist categories will also receive the program’s highest honor—”2011 Next-Generation Pharmacist.” This award recognizes a licensed pharmacist who embodies the highest standards of patient care, management and operations, while demonstrating an uncompromising vision for the pharmacy industry.

Pharmaceuticals and philanthropy

“My father-in-law, a dear man, gave me a wonderful gift. He told me, ‘If you want to marry my daughter Myrna, you’ll have to join the board of governors of Hebrew University.’ The ties with his daughter, and through her with the university, are one of the most important of my life,” businessman and philanthropist Isaac Kaye told “Globes”.

Few people admit that their father-in-laws have such involvement in their lives, especially when it leads them to a relationship that costs quite a bit of money. Kaye, 80, a former top executive in Europe’s generic pharmaceuticals industry, was a partner with Philip Frost in Ivax, which they sold to Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) for $7.4 billion in 2006, is one such man.

Although Kaye had retired before the sale of Ivax, he was still a partner in the company, and he made hundreds of millions of dollars on the sale, which turned him into a billionaire.

In 1993, Kaye established the Kaye Innovation Awards at the Hebrew University of Jerusalem. Prizes awarded to date have totaled millions of dollars, on top of his tens of millions of dollars in donations to the university. The awards are granted to inventors who improve the human condition and contribute to the university, which earns royalties from them.

Kaye has been expanding applied research activity in Israel in recent years. He and his son, Steven Kaye, are partners in Israel Healthcare Ventures Ltd., alongside managing partner Dr. Hadar Ron. Isaac Kaye told “Globes” that this led him to become more active in Israel’s life sciences industry.

A resident of London, Kaye makes frequent trips to Israel, and his two brothers live here. “That’s how things turned out,” he says, “I was born in Rhodesia, a British colony at the time, so it was convenient for me to go into business in the UK. But I have already informed my family that at the end of my life, I want to grow old in a facility on the beachfront in Herzliya, just like my brother.”

Kaye’s roots are in the Jewish community of Southern Rhodesia (now Zimbabwe). He never imagined that he would achieve such success in the international arena, starting as a pharmacist in the family business and becoming the generics tycoon of southern Africa.

“I had a pharmacy,” Kaye relates. “The market was undeveloped, and I opened a chain of pharmacies. I then began producing generic drugs and marketed them across southern Africa. I even bought products from Teva, which wasn’t yet called that, which I marketed in the Congo.”

“Globes”: What was it like as a pharmacist in Rhodesia in the 1960s?

Kaye: “It was fine at first. It was an advanced colony in terms of culture, infrastructure and technology, but I didn’t feel that it was my country. I’m the ultimate wandering Jew.”

In the 1960s, when political friction began in Rhodesia, the Kaye family moved to South Africa. “Since we had developed our business across the continent, the move was fairly easy and necessary,” he says.

In South Africa, Kaye expanded his pharmacy empire, spreading across most of southern Africa. “That’s how it is when you get on the train to success,” he says. “Afterwards, you don’t want to get off. A man strives for success in what he does, and it’s not a matter of money.”

Kaye’s time in South Africa was not always smooth. He aroused local ire, partly because he supported the Nationalist Party, which created the Apartheid regime, and because he was a generous philanthropist to doctors and hospitals and therefore accused of buying the market. In his defense, he says that all he wanted to do was to show his appreciation for these doctors.

Today, with no connections to South Africa, he says that his donations to the Hebrew University are “the best way to show my appreciation for these researchers. How else will they finance their studies?” In his eyes, he is consistent.

“We supported the Nationalists, and it ultimately made a deal with Nelson Mandela. I previously tried to broker a similar deal in Rhodesia, but it failed, and today Zimbabwe is a failed state.”

Kaye subsequently left South Africa for political reasons. “We thought there would be another revolution,” he says. Myrna adds, “In the end, this wonderful man, Mandela, was released, and that saved the situation. Mandela is amazing, but so was Frederik de Klerk, the last leader of the Nationalists, because he created a dialogue with him. The work of the Truth and Reconciliation Commission that was set up to shed light on the atrocities of the Apartheid regime and to give its victims a sense that their voices were heard, was very important.”

The next question that begs to be asked is whether this can teach something about the political situation in Israel.

“Yes. You have to talk with the enemy. If wise people talk with each other, it’s possible to find a solution. If you don’t talk – that’s a total disaster. I love to talk with Arab students at Hebrew University. I don’t feel that they are different from me or from the Jewish students.”

While all this was happening in South Africa, the Kaye family was establishing itself in London, where they arrived in the mid-1980s. Kaye founded a flourishing generics company Harris Pharmaceuticals Ltd., which went on to become Norton Healthcare Ltd., which in turn was acquired by Ivax Corporation, which was acquired by Teva.

How were you able, as a new immigrant from South Africa, to establish a successful generics drug company in Britain? “I sold the South African business at a price that I will keep to myself, but which I am prepared to say left me financially comfortable. Before that, I invested a bit in the British generics market. The market flourishing was at the time, after changes in US law, which created many opportunities.

“At that time, my friends at Teva chased after me to acquire us, but I felt that the time was not right. We still had to grow.”

Kaye quickly established himself in the UK, becoming a major donor to the Labor Party, activity that once again created political opponents. Meanwhile, Norton Healthcare spread from the UK across Europe.

Kaye met Philip Frost, the founder of Ivax and now the chairman of Teva, through a mutual friend. “We went on a family holiday together. The personal click was instantaneous, partly because of our love for Israel. There was also clear synergy between our companies.”

Kaye sold Norton Healthcare to Ivax in a deal that gave Kaye ₤25 million and a stake in the merged company. The size of the holding is still confidential. Norton became Ivax UK Ltd., and Kaye served as chairman.

Ivax competed against Teva in Europe, and Kaye fondly remembers the rivalry. “Eli Hurvitz did wonderful work at Teva. He’s a great man, a great Israeli. A man of the people.”

Where do you think the generics market is headed?

“Only up, for the same simple reasons that is driving the growth of the brand drug business – the population is aging, emerging markets are entering the circle of health payers, and people’s growing awareness about their health.”

The brand companies’ battle against the generics is particularly sensitive in Africa. In the 1990s and early 2000s, African countries and their lobby in the West called on big pharma not to protect their patents in Africa, for humanitarian reasons. Big pharma companies initially fought back, but public opinion defeated them, possibly combined with business considerations.

“The big companies were all right in this matter,” says Kaye. “They understood that it was better and cheaper to forego patents in the African market, and maybe even certify local companies to manufacture drugs for them. Microsoft founder Bill Gates was a great help. Today, the companies sell drugs at basement prices to the Gates Foundation, and he donates them to patients, because the pharmaceutical companies agreed to this model. A man can contribute from his assets or from himself. Gates gives from both, and I also prefer such a donation.”

In addition to his philanthropy to the Hebrew University, Kaye has ties with IHCV, which was co-founded by the late Prof. Uri Levitt and Dr. Hadar Ron. Kaye says with regret, “He did not even have a year with us. Hadar has what it takes for the job. He’s a lawyer, doctor, and inventor. The fund is successful and working with it very satisfying. We’ve founded 24 companies, had seven exits, and closed only two companies. I and my son, Steven, not only gave money, we’re really involved in managing the fund.”

Ron says, “The fund was set up at the time of the classic model, but we have a rule: our investment committee, which comprises the partners, must make unanimous decisions. We don’t restrict ourselves to a field within medical devices or a company stage. The pace at which a company develops does not necessarily determine how close it is to an exit. Late-stage companies sometimes get stuck, and early-stage companies sometimes suddenly have an exit. It’s impossible to know.”

Pharmacy Industry News: Cardinal Health Extends Radiopharmaceutical Manufacturing Network, Opening its First Cyclotron in Georgia

Montel Williams – I’m Now In The Weed Business

Montel — an outspoken proponent of medical marijuana use — took the job hoping to create a store that runs more like a pharmacy and less like a shady back-alley head shop.

During a news conference yesterday, Montel announced his partnership with the Albatin Wellness Cooperative — and said, “We want to provide safe access [to marijuana] for patients and really medicalize this. Patients should be put first.”

Montel said he’ll be “involved at every level of the cooperative, from the philosophical direction down to the blueprints.”

He added, “I want this to be someplace your mother and father could see themselves walk into.”

Williams — who was cited back in January for trying to bring a pipe onto an airplane — was diagnosed with multiple sclerosis in the late 90s, and credits pot with alleviating his near-constant neurological pain.

Cardinal Health Extends Radiopharmaceutical Manufacturing Network, Opening its First Cyclotron in Georgia

Cardinal Health today opened its first cyclotron facility in the state of Georgia, further expanding its nationwide capability to manufacture molecular imaging biomarkers that aid in the early diagnosis, monitoring and treatment of cancer, neurological disorders and heart disease.

Cyclotrons are critical to the manufacturing process for Positron Emission Tomography (PET) molecular imaging agents, one of the fastest-growing areas of nuclear medicine. When injected into the body, these specialized radiopharmaceuticals, called biomarkers, detect and trace abnormal cellular functions that are associated with a variety of diseases. Visible using sophisticated imaging scanners, these biomarkers make it easier for physicians to non-invasively diagnose critical, life-threatening diseases in their earliest stages. They can also improve physicians’ ability to track the effectiveness of patient treatment plans.

Cardinal Health’s Augusta cyclotron facility will be located nearby its existing nuclear pharmacy in Augusta, where the company will dispense PET imaging agents in patient-specific doses. Cardinal Health now operates a nationwide network of 36 cyclotrons, with its Charlotte, N.C. cyclotron being the closest to Augusta.

“The introduction of our newest cyclotron in Augusta underscores Cardinal Health’s commitment to making molecular imaging more accessible to physicians and patients in Georgia and throughout the United States,” said John Rademacher, president of Cardinal Health’s Nuclear Pharmacy Services business. “This innovative technology is an important tool in improving the quality and cost-efficiency of health care, because it helps physicians save lives by enabling them to detect serious illnesses and determine the effectiveness of related treatment plans.”

The new cyclotron will also support molecular imaging research in nearby hospitals and universities, and will be available to support clinical trials that evaluate the effectiveness of new PET imaging agents.

Cardinal Health’s Nuclear Pharmacy Services business operates the nation’s largest network of radiopharmacies. The company has strategically located its nationwide network of cyclotrons to enable nearly 100 of its 160 radiopharmacies to compound and dispense high-energy PET imaging agents in unit-dose form. The company’s vast network of “PET-enabled” pharmacies, combined with its broad nuclear pharmacy scale, comprehensive fleet and logistics capabilities enable it to play a critical role in supporting clinical trials of both proprietary and non-proprietary imaging agents.

Counties set to stir competition in health sector

Most of Kenya’s counties have adequate resources apart from the arid and semi arid areas.

About all are in agribusiness except Nairobi (financial hub) and Mombasa (tourism). With devolution, financial competition will be against other counties.

In readiness, many counties are forming young professionals groups to streamline their business agenda. Of course some are politically motivated, but there are genuine cases.

Almost a third of the nation’s health resources (both brain and financial) are clustered around a 10 square kilometre area; starting from Ngong Road, Mbagathi Way extending to Hurlingham and Karen in Nairobi.

This area informally referred to as “hospital hill” boasts no less than 10 well-equipped hospitals, pharmaceutical companies and many private medical clinics and laboratories.

Several other counties have a potential to enter into this business and enjoy its opportunities.

Those endowed with good health facilities, medical colleges and proximity to the city could grab a piece of this business for themselves as “alternative medical centres of excellence.” The good road networks and numerous airstrips mean that functional transport is no longer a problem.

In this regard, four towns spring to mind, namely Nyeri, Kisii, Kisumu and Eldoret. In realisation of this fact a group of young professionals were discussing the business areas the county should target as its niche.

I recently was invited to such a meeting. Among the ideas mooted, the best entailed leveraging the counties’ health assets. One such idea was to make the county a niche destination for health services, to avoid competition from fellow counties.

The county has six fairly well equipped hospitals (higher than any other), many well trained medical personnel.

It also boasts a government hospital currently undergoing upgrade to a referral hospital. The post election violence has also seen many investors sloughing their money in “safe” home territories. As a result, capital is available for some of these professionals.

The group also proposed establishing a private medical university to benefit from the proposed referral hospital.

Already a university college in the county has started offering clinical medicine courses as it shops for a private suitor potentially from a foreign university to help it roll out a fully fledged medical school offering medicine and pharmacy degree courses.

The other plan mooted was to help the county establish a ‘medical tourism industry”.

Already this informal but fledgling sub-sector is underway both locally and within the region. Uninsured city based patients are moving to peripheral towns in the hope of reducing their medical bills.

Walgreen Sheds PBM Biz

Recently, the divestment of Walgreen’s (WAG – Analyst Report) pharmacy benefit management (PBM) business to Catalyst Health Solutions (CHSI – Analyst Report) for $525 million was completed. Walgreen anticipates the deal to be EPS-neutral in fiscal 2012.

Subsequent to this deal, Walgreen will be able to better focus on its 7,700 drug stores. On the other hand, through this transaction Catalyst Health will expand its PBM business and raise its membership to more than 18 million from the current level of 7 million.

Walgreen’s objective has been to use its cash balance strategically to enhance its business prospects. Earlier this month, the company completed the acquisition of drugstore.com for a total enterprise value of $409 million.

Through this deal, Walgreen’s online presence will be enhanced as it will be able to access more than 3 million online customers. Moreover, the company will be able to add up almost 60,000 more products to its already strong online offering

Walgreen’s strategy of store expansion coupled with operational acumen has made the company a leader in the retail drug store industry. The company has reduced organic new store openings to 4.0%−4.5% in fiscal 2010 from 9% in 2008 and is targeting to be within 2.5%-3.0% in fiscal 2011. This will have a positive impact on the company’s operating profit.

Our Recommendation

We are encouraged by Walgreen’s strategic decisions, including the sale of the PBM business and the acquisition of drugstore.com. Moreover, the benefits from the CCR rollout and rewiring initiative will be experienced gradually. Leveraging on its strong cash balance, the company is well equipped to pursue suitable acquisitions in future.

In order to make the best use of available funds, Walgreen has scaled down its stores opening target. We believe this decision will benefit the company as the new stores take 2 to 3 years to break even. However, Walgreen has been impacted over the past few quarters by high unemployment levels and lower discretionary spending.

We have a Neutral recommendation on Walgreen, which also corresponds to the Zacks #3 Rank (Hold) in the short-term.

Pharmacy Industry News: Tim Canning to Join Omnicare as Chief Marketing Officer

Tim Canning to Join Omnicare as Chief Marketing Officer

COVINGTON, Ky., June 15, 2011 – Omnicare, Inc. (NYSE: OCR) today announced Tim Canning has been appointed Senior Vice President and Chief Marketing Officer and will join the Company effective June 27, 2011.

Mr. Canning will oversee and lead the marketing function across the Company, while also taking full responsibility for Omnicare’s retail pharmacy operations. He will report directly to John Figueroa, Omnicare’s Chief Executive Officer.

“Tim is a world-class executive who has successfully grown a number of healthcare brands through a passionate approach to meeting the customer’s needs and an exceptional marketing aptitude,” commented Mr. Figueroa. “He will be a very important member of our executive team, as we look to rebrand the company and create a unified message in the marketplace to better leverage our industry-leading platform.”

With nearly thirty years of healthcare experience, Mr. Canning brings to Omnicare an extensive industry background. For the past nine years, he served in various executive roles for McKesson Corporation, most recently as president of its Health Mart pharmacy business. In this role, Mr. Canning had full operational responsibility for the Health Mart franchise, including the development and implementation of its long-term strategic plan. Under his oversight, Health Mart experienced rapid growth, expanding from 262 stores to 2,800 stores in becoming the nation’s fourth largest drug chain.
Mr. Canning has also served in an executive marketing role for Pharmacia Consumer Healthcare (currently Pfizer Consumer Healthcare), as well as in brand management for several products in the Wyeth Consumer Healthcare portfolio (currently Pfizer Consumer Healthcare). Mr. Canning holds a bachelor’s degree in marketing from Marquette University.

Letting the camel into the tent

The news came out recently that the committee formed under the Chief Economic Advisor to the Government has recommended to the Cabinet that foreign direct investment in multi-brand retail (like Walmart, Tesco, Carrefour and others) should be permitted. As with any committee making such a recommendation, this one has gone on to justify why FDI in multi-brand retail would be beneficial to the country. The committee has talked about investment in supply chain infrastructure that is supposed to reduce wastage. It has stated that employment would go up, and farmers would somehow get a better pricing for their crop.

While the reasons advanced by the Committee are questionable and would hardly stand up to close scrutiny, I would not enter that debate here, since these reasons are not central to the issue. There should be one main question that should be posed to determine if FDI in multi-brand retail is justified — will such multi-brand retail reduce the cost of distribution from the producer (be it farmer or manufacturer) to the end consumer?

In marketing terms, this is known as the channel cost. In layman’s terms, we can simply see it as the cost of moving/storing/financing/selling incurred between the point of production and the point of final sale to the consumer. This is the main measure of economic efficiency that we should look at.

Increase in cost

Let me answer this upfront. Multi-brand retailers like the Walmarts and Tescos will increase the cost to the consumer substantially over time, compared with wholesale/retail practices in India. There is plenty of evidence to prove this conclusively.

The increase in cost is not by some small percentage. Multi-brand retail mark-ups are at a minimum 2x, and as high as 9x more, compared with the retail/wholesale mark-ups in India. This cost is built into their model, and it is the premium paid by the average consumer in the West to get their everyday items of consumption.

Let us compare the channel cost of four categories of daily-use products that will be available through multi-brand retail:

Fast moving consumer goods like food, personal care products, toiletries etc; Clothing — textiles and readymade garments;

Over-the-counter pharmaceutical products;

Cookware/kitchenware small appliances.

Consumer goods: The distributor/stockist margin in India ranges from 4 per cent to 8 per cent, and the retailer margin ranges from 8 per cent to 14 per cent. The margin is on manufacturer’s prices. They vary depending on company volume, market clout, type of product and so on. The total channel cost incurred by the distribution chain in India thus ranges from 12 per cent to 22 per cent.

In the US and Europe, the Safeways and Krogers and Tescos mark up this category of products by 40 per cent on cost of goods, depending on product type, volume, demand, exclusivity and so forth.

The channel mark up is 2x to 3x more than Indian channel/retail costs. We should not be misled by ‘Sale’ prices and ‘loss-leader promotions’ that they routinely employ to draw the customers.

Clothing/garments: In the Indian textile business, the combined wholesale plus retail margin ranges from 35-40 per cent on the ex-mill price. In the readymade garments business, the margin at retail in a brand outlet seldom exceeds 30 per cent of ex-factory price. Compare this to a Macy’s or Marks & Spencer.

These retailers routinely mark up by 2x to 4.5x, the price at which they procure the garments. Then they offer ‘Sale’ discounts of 15-30 per cent. Even comparing the ‘Sale’ price, these retailers’ mark-ups are 2x higher at the lowest end of the spectrum. Routinely, their mark-ups are thus 5x to 9x of what the retailers in India charge.

OTC Pharmaceuticals: In India, the pharmacies and chemists are better organised as a trade body, and the supply side is highly fragmented. Therefore, they enjoy better retail margins.

Even so, the retail chemist’s margin in India is at 20 per cent. Add the distributor/stockist margin of 10 per cent, and the C&F agent’s cost of 4 per cent, the total channel cost is a maximum of 34 per cent of ex-factory price. Compare this with a Walgreen’s or CVS pharmacy in the US, or a Boot’s in the UK. These retailers mark up the OTC products by 2x or 3x or more, and then offer some items on ‘Sale’. These big retailers’ mark-ups are 6x more at the minimum, as far as channel costs go, compared to India’s pharmacies.

Cookware/kitchenware: India’s channel costs for this category are lower. The combined distributor/retailer margin in India for products like pressure cookers and cookware is less than 30 per cent, out of which the retailer retains 10 per cent to 15 per cent only. For the same category of products, retailers such as Walmart, Bloomingdales and Sears in the USA would routinely mark up the merchandise by 100-200 per cent of landed cost. Even ‘On Sale’, at the lowest end, the channel mark up is 5x what they are in India.

Indian distribution efficient

All this evidence, available freely, suggests that the Indian distribution system, as it has evolved over the years, is among the most cost-effective and efficient in the world. For sure, our markets and bazaars do not have the polish of a mall in Europe or the US or Japan. But to the average Indian housewife, they offer remarkable value, and help her get along on low incomes. It is this balance that the proposed FDI in retail will upset over time.

Talk of investment in supply chain and back-end logistics only diverts attention from the main issue of total channel cost. The government committee should focus on what is in the best interest of the average Indian, and not be swayed by industry lobbies and pressure from foreign governments. Our markets are highly efficient, driven from the bottom up by the self-interest of millions of small traders and merchants. Let us not interfere with this and fall into the Western trap of multi-brand retail.

Cardinal Health, Prime Therapeutics Renew Primary Distribution Agreement

Cardinal Health today announced that it has signed a renewed, three-year agreement with Prime Therapeutics, one of the nation’s leading pharmacy benefit managers, to continue to serve as its primary pharmaceutical supply chain partner for its mail-service pharmacy, PrimeMail®.

Prime Therapeutics managed more than $10.2 billion in prescription drug spend in 2010, and currently serves nearly 17 million members through Blue Cross and Blue Shield Plans, employer and union groups and third-party administrators.

“We look forward to continuing to deliver the kind of flexible and innovative pharmaceutical distribution services that help Prime Therapeutics to efficiently and effectively serve its patients’ medication needs,” said Jon Giacomin, president of Cardinal Health’s U.S. Pharmaceutical Distribution business. “This renewed agreement is an excellent example of our commitment to building mutually beneficial customer relationships that enable us to grow our pharmaceutical distribution business while also improving the overall costs of healthcare.”

Cardinal Health will also continue to offer Prime Therapeutics additional supply chain optimization services to help improve its operational efficiency.

“Our strong and flexible partnership with Cardinal Health has enabled us to leverage their operational excellence and economic value to cost-effectively purchase medications, while we also continue to engage and maximize our own direct generic purchasing,” said Peter Wickersham, Prime Therapeutics Senior Vice President of Cost of Care. “Cardinal Health consistently delivers the experience and value-added services that we need to help us to continue delivering quality, cost-efficient prescription drug benefits to our customers.”

About Prime Therapeutics

Prime Therapeutics is a pharmacy benefit management company dedicated to providing innovative, clinically-based, cost-effective pharmacy solutions for clients and members. Providing pharmacy benefit services nationwide to nearly 17 million covered lives, its client base includes Blue Cross and Blue Shield Plans, employer and union groups, and third-party administrators. Headquartered in St. Paul, Minnesota, Prime Therapeutics is collectively owned by 12 Blue Cross and Blue Shield Plans, subsidiaries or affiliates of those Plans.

SAS® Analytics Help High-Risk Patients Stay on Therapeutic Track

When patients stop taking prescribed drugs or reduce frequency or dosages, the effect can be devastating, causing health complications or even death. Express Scripts, one of the largest pharmacy benefit management companies in North America, trusts SAS Analytics to keep patients on their drug regimens to live healthier lives.

Express Scripts handles millions of prescriptions annually. Using software from SAS, the leader in business analytics, the company predicts patients likely to abandon medication, offering intervention programs to address potential issues before the patient becomes noncompliant.

“When patients stop taking a prescribed drug against doctors’ advice, it can significantly set back treatment,” said Jason Burke, Jason Burke, Managing Director and Chief Strategist for the SAS Center for Health Analytics and Insights (CHAI). “It’s a widespread problem. A Harris Interactive poll estimated that between 14 and 30 percent of US patients have stopped or altered their prescription drug regimens.”

SAS predictive models developed by Express Scripts analyze more than 400 factors related to patients, drugs, conditions, physicians and other issues. Based on that analysis, Express Scripts tailors proactive interventions to an individual’s likely barriers to compliance. Actions might include automated reminder calls, individualized education and support, or automated refills, for example.

“For patients requiring medications with chronic disease classes, such as hypertension, diabetes or high cholesterol, it’s in their best interest for better health outcomes, as well as in the payer’s best interest, that they continue their prescription regimens,” said Express Scripts Director of Advanced Analytics Dave Tomala. “Even if medication costs increase marginally, overall medical costs are minimized through better health outcomes.”

Express Scripts uses the predictive models created with SAS Analytics to continually improve its services and become a proactive partner in patients’ health.

“We’re talking about treating patients proactively. We can predict who will comply with their medication or not,” Tomala explained. “Our outreach programs address an individual’s risk factors. People too busy to order a refill can be moved into an automated refill program before a lapse occurs. Patients concerned about side effects might benefit from talking to a pharmacist. We analyze each patient to offer the most effective programs to keep them healthy.”

SAS in Health Analytics

SAS is the industry leader in health analytics software and services, delivering best-in-class solutions for improving medical care, strengthening financial performance, deepening customer relationships, and pursuing medical innovations. All of the top 25 health plans and pharmaceutical companies depend on SAS for strategic insights into health outcomes, profitability, and customer preferences and behaviors that produce useful intelligence for business transformation and growth.

Regulating temporary import of frozen foods

The Ministry of Industry and Trade issued Circular No21/2011/TT-BTC on May 20, regulating the temporary import and re-export of foodstuffs through border provinces. Traders seeking a licence to conduct such activities shall pay a deposit of VND2 billion (US$95,238) to the province in which their warehouse or freight yard is located to ensure compliance with food hygiene and environmental regulations.

The regulation also sets conditions for warehouses or freight yards to include a minimum capacity for 100 40-foot containers and a minimum area of 1,500sq.m, fenced off by a solid palisade, with sufficient electrical supplies and specialised food storage equipment.

Circular No 21 provides that the traders shall reduce or halt temporary imports upon order of authorised agencies. A failure to complete customs requirements would require traders to re-export cargo back to the exporting country. Traders who failed to execute cargo clearance at harbors or border-gates would also be forced to halt temporary import and re-export of frozen foodstuffs for six months, with repeated breach to result in a withdrawal of the licence.

Circular No 21 takes effect on July 3.

Strict requirements for hospital pharmacies

Beginning June 10, a retail pharmacy in a hospital must possess a certificate of eligibility for medicine trading. Under Ministry of Health Circular No 15/2011/TT-BYT of April 19, such a pharmacy may take the form of drugstore, medicine counter or retail store for traditional and herbal medicaments located within a hospital’s premises.

They must post drug prices pursuant to regulations and may not sell drugs at prices higher than those posted. The retail price, including invoiced purchase price and retail markup, must not be higher than those of drugs in the same category on the market. The regulation details allowed markups for different types of pharmacies operating in hospitals.

Those retailing traditional herbal medicaments must have technical and physical foundations and personnel satisfying “good pharmacy practice” principles and standards set forth in the relevant roadmap. Foreign-invested hospitals may not open or enter into joint ventures to open their own retail pharmacies without Government permission for pilot operations. The circular supersedes Ministry of Health Decision No 24/2008/QD-BYT of July 2008 on hospital pharmacies.

Loss-making SMEs enjoy longer tax break

Ministry of Finance Circular No 52/2011/TT-BTC of April 22 extends the corporate income tax (CIT) payment deadline for small- and medium-sized enterprises but does not cover income or gains from real estate investments; finance, banking, insurance, or securities; construction; or lottery services, nor does it apply to excise tax liabilities and profits from trading of commodities restricted from import.

Pharmacy Industry News: Medco May Seek Acquisition With Biggest Contract Imperiled

Medco May Seek Acquisition With Biggest Contract Imperiled

Medco Health Solutions Inc. (MHS), the pharmacy benefits manager that lost $3.5 billion in contracts since March, may seek acquisitions to make up for lost revenue if its biggest remaining client fails to re-sign this year.

The $11 billion contract with UnitedHealth Group Inc. (UNH), representing about 17 percent of Medco’s business, expires after 2012. The insurer is reviewing the agreement and will decide whether to renew this year, UnitedHealth Chief Executive Officer Stephen Hemsley said on June 1. The Minnetonka, Minnesota-based company is leaning toward terminating the contract and handling the work with its in-house unit, said Ana Gupte, an analyst at Sanford C. Bernstein & Co. in New York.

If so, Franklin Lakes, New Jersey-based Medco will likely seek acquisitions to help make up for the lost sales by looking to purchase another pharmacy manager or diversifying beyond its core business of buying, dispensing and overseeing prescriptions for companies, analysts said.

“This is an industry where scale matters, and the loss of UnitedHealth will increase the pressure on Medco executives to fill in the revenue gap it creates,” said Helene Wolk, an analyst also at Sanford Bernstein, in a telephone interview. A potential target may be Cigna Corp. (CI)’s pharmacy unit, which the insurer tried to sell two years ago, she said.

The loss of UnitedHealth, with its 20 million members, may drop Medco from the biggest pharmacy benefit manager by revenue to the smallest, behind Woonsocket, Rhode Island-based CVS Caremark Corp. (CVS) and Express Scripts Inc. (ESRX), of St. Louis, Wolk said. Sanford Bernstein has an “outperform” rating on Medco with a $66 target price.
Share Performance

Medco rose 15 cents to $56.92 in New York Stock Exchange composite trading at 9:47 a.m. The shares had dropped 12 percent since May 26, the day before the company announced the loss of a $3 billion contract covering 4 million U.S. government workers and 9.8 million mail-order prescriptions. Medco in March lost the renewal of a $500 million contract with the California Public Employees Retirement System.

The federal-employee contract, lost to CVS, represents less than 10 percent of Medco’s estimated earnings and won’t affect 2011 results, Jennifer Luddy, a company spokeswoman, said.

Medco is “confident in our differentiated services and competitive positioning in the marketplace,” Luddy said in an e-mail. “Our 2011 client retention rate remains at over 99 percent, a result of our focus on superior client service and the value that we consistently deliver through our advanced clinical pharmacy model.”
‘Explore Opportunities’

While Luddy declined to comment specifically on whether Medco may seek acquisitions to make up for lost contracts, she said “we are open to and explore opportunities that make strategic sense.”

UnitedHealth’s contract generates about 8 percent of Medco’s earnings per share, Bernstein’s Wolk said.

“We expect UnitedHealth is unlikely to renew that contract for 2013, bringing some or even all PBM activity in-house,” Gupte, also from Bernstein, wrote in a June 2 note to clients.

UnitedHealth has a unit that manages pharmacy benefits; taking that business in-house may increase its size by 67 percent, Bernstein’s Wolk said. Investments made in the pharmacy unit, called Optum Rx, are sufficient to handle the Medco business, UnitedHealth’s Hemsley said April 21 during an earnings conference call.
Clear Signals

“I don’t know how the signals could be any clearer,” said Art Henderson, an analyst at Jefferies & Co. in Nashville, Tennessee, in a telephone interview. “United wants to take the business in-house and Medco will have to be very competitive in price to maintain any of it.”

To make up for revenue losses, Medco may look to diversify beyond pharmacy benefits management, as it did Aug. 16 when it agreed to buy United BioSource Corp. for $730 million, said Ross Muken, an analyst at Deutsche Bank in New York.

United BioSource, which tests drugs and devices after they are approved by regulators, “was a completely new offering,” Muken said in a telephone interview. “I think certainly things like that will be highly interesting.”

Competition intensified among pharmacy benefits managers after Express Scripts moved forward with integrating Indianapolis-based WellPoint Inc. (WLP)’s pharmacy benefits unit with 25 million members. CVS, in the past year, grabbed a contract with Capital Blue Cross of Pennsylvania from Express Scripts and the federal workers plan from Medco.
Changing Strategy

“Historically, Medco has never been a fan of just buying market share,” Eugene Goldenberg, an analyst at BB&T Capital Markets in New York, said in a telephone interview. “But over the last six to nine months, we have seen management’s tone change” toward acquiring another pharmacy benefits manager.

The number of potential targets dwindled after Hartford, Connecticut-based Aetna Inc. (AET) gave a 12-year, $9.5 billion contract to CVS last July and UnitedHealth began investing in its pharmacy benefits unit.

Among those left on the market is Philadelphia-based Cigna’s pharmacy benefits unit with 6.2 million members as of March 31; Prime Therapeutics LLC in St. Paul, Minnesota, with about 17 million members; and MedImpact Healthcare Systems Inc. in San Diego with about 32 million participants, said Jefferies’s Henderson. Of the three, Cigna offers the most profitable business, he said.

Asked about a potential sale, Lindsay Shearer, a Cigna spokeswoman, said the insurer sees “pharmacy as a key component of Cigna’s integrated approach to health care.”

“The business has delivered strong results for us,” Shearer said in an e-mail. “At the same time, we are always evaluating opportunities to maximize its value for our customers and shareholders.”

Prime Therapeutics said it has been approached by potential buyers though it isn’t looking to sell the business. “We are very pleased with where we stand as an important player in the PBM market,” said Matt Yordy, senior vice president for business development.

Taylor Heringer, a spokeswoman for MedImpact, didn’t respond to requests for comment.

Fresno’s Renge’s Pharmacy closes its doors Wednesday

In Fresno, where you almost can’t throw a rock without hitting a major chain pharmacy, Renge’s Pharmacy has been one of the last of a dying breed – an independent neighborhood drug store. And despite being in Chinatown, a neighborhood that has seen better days, owner/pharmacist Mel Renge has endured while other businesses have come and gone.

But after being battered by the recession and shrinking insurance payments for prescription drugs, Renge has decided to close the pharmacy that his father founded in 1951.

Wednesday will be the last day of business for Renge’s on F Street between Kern and Inyo streets. And customers – many of whom rely on Renge and his staff to patiently explain prescriptions or allow them to pay when they can – are in a state of shock.

Renge – whose late father Nobuo Renge started the business on California Avenue – is selling out to industry giant CVS. CVS will transfer patient prescription records to its nearby store on the Fulton Mall, where Renge and three of his four employees will work.

“It was a really tough decision,” said Renge, 61. “We’ve got two or three generations of families doing business with us.”

Renge’s biggest concern is for the denizens of Chinatown – senior citizens, the poor, the homeless and other special-needs customers. For years, Renge has gone to great lengths to help those who live in the neighborhood, extending credit and offering delivery, even filling prescriptions for the homeless at the nearby Poverello House.

“My dad started the whole philosophy of treating people with dignity and just giving them the best level of care that we can,” Renge said Monday as a steady stream of customers came to the store.

Over the past few years, however, it’s been more difficult to provide those services and still keep the business afloat.

“Obviously, like everyone else in this economic downturn, we’ve been hurt,” he said. “We were surviving, but the Medicare reimbursement levels kept decreasing every year.” Renge said he anticipated that MediCal, the state’s low-income insurance program, would probably also drop significantly this year.

CVS wasn’t the first chain pharmacy company to approach him in recent years, Renge said.

“As tough as it was, we’ve been just hem-hawing for a couple of years, but it just wasn’t the right time,” he said. “Looking at the big picture, this is something that was probably inevitable, whether it be this year, or next year or five years from now.”

CVS has committed to continue serving customers who are on credit terms and to offer delivery, which Renge said made his decision to sell somewhat easier.

“It’s kind of a win-win for the patients and for us as well,” he said.

Customer Mary Murray, who brought in a prescription Monday, was near tears when a clerk told her the store was closing. Renge quickly stepped from behind his counter to offer her a comforting hug.

“It’s going to be OK,” he told her. “We’re going to be close by.”

Murray said she drives past other pharmacies nearer her east-central Fresno home to get to Renge’s. The closing, she said, is “sad because they take such special care of people.”

Maria Sanabria has shopped at the pharmacy for more than 50 years, dating back to Nobuo Renge’s original location on California Avenue. “I knew [Mel] when he was a little boy and his father and mother ran the store,” Sanabria said. “They were good people.”

But she was fearful when she learned about the closure. “I thought, ‘Oh, my God, what am I going to do?’ because these people take care of me real good,” Sanabria said. “When I don’t have the money to pay, they give me the medicine and let me pay when I can.

“But then he told me not to worry, that everything will be the same.”

Dr. Marc Lasher, who used to operate the Chinatown Family Medical Clinic from the rear of Renge’s building, said that kind of service will be missed the most.

“Mel has taken care of people … whether they are illiterate or because of mental health,” Lasher said. “He’s been the safety net in our society right there on F Street. He wouldn’t just let those people slip through.”

Lasher added that Renge often filled prescriptions at little or no cost to homeless patients from the Holy Cross Clinic at the Poverello House. “He’s been a guardian angel to many, many people, including us when we had our practice there,” the doctor said.

City redevelopment officials said Renge’s closure represents what is happening to many small retailers, including independent pharmacies, across the country.

“It’s sad to see a community business closing, but it’s inevitable in a lot of business sectors because of how business is evolving,” said Terry Cox, a redevelopment manager whose responsibility includes the Chinatown district.

Officials said they believe Renge’s building will eventually become home to another business – and probably one that, like Renge’s, will be locally owned.

“It’s an unfortunate rite of passage,” Cox said. “But we are seeing new interest and investment in Chinatown. Positive things are happening.”

Splitting the Difference: Workshops Highlight Industry, Medical Relationships

Two conferences in coming weeks are featuring starkly different views on the (a) harms or (b) benefits of interactions between the pharmaceutical industry and the doctors, researchers and journal editors who shape medical care.

Georgetown University is sponsoring its second “PharmedOut” conference on June 16 and 17 with a lineup of some of the industry’s leading and best-informed critics, including Dr. Marcia Angell, former editor-in-chief of the New England Journal of Medicine and a senior lecturer at Harvard Medical School.

Meanwhile, on July 22, a nonprofit group called the Association of Clinical Researchers and Educators, or A.C.R.E., is holding its second conference since its founding in 2009, to explain the reasons to support collaborations between the industry and doctors.

At next week’s conference, Dr. Angell, who discusses reasons for the explosion of mental health drugs in the current issue of The New York Review of Books, believes many conflicts-of-interest should be banned, not just disclosed.

The Georgetown conference also features Dr. Carl Elliott, the University of Minnesota professor and bioethicist who is under attack at his own university for raising questions about a medical experiment there, and Dr. Virginia Barbour, chief editor of PLoS Medicine, an “open-access journal” and free Web site from the Public Library of Science.

The organizer of the Georgetown conference, Dr. Adriane Fugh-Berman, a Georgetown University associate medical professor, says it will cover some of the newer issues emerging in medical conflicts-of-interest. These include the role of drug company employees known as medical-science liaisons and the influences brought to bear on pharmacy benefit managers.

The second conference was co-founded by Dr. Thomas P. Stossel, a professor at Harvard Medical School and director of translational medicine at Brigham and Women’s Hospital. He has seen himself as a sometimes lonely voice to speak in favor of industry collaborations with researchers and medical schools.
.
Dr. Stossel argues that the financial aid and research interactions benefit patients and advance science. He will lead a panel called, “Academia/Industry Collaboration: Why is it under attack by politicians, deans and the media?”

Other A.C.R.E. panels will discuss what industry, patients and medical students should do to push back against the type of thinking generally represented at the Georgetown conference. Dr. Michael A. Weber, a professor at SUNY Downstate Medical Center College of Medicine and a former president of the American Society of Hypertension, talks about A.C.R.E.’s upcoming plans.

Pharmacy Industry News: Home remedies for stings, warts and arthritis

People’s Pharmacy: home remedies for stings, warts and arthritis

Q: Last week, a red wasp stung my finger. It had gotten in one of the drawers in my bathroom and nailed me when I reached for my hairbrush. Within minutes, my whole finger was twice its size, and I could not do anything for the excruciating pain as my entire hand started to swell.

In desperation, I went online looking for something to help and found your website. I cut an onion and started rubbing the cut end on the sting. Within seven minutes the pain began to ease, and within 30 the pain was almost gone. The swelling had subsided by almost half, and I was able to get ready for work.

I taped the onion on my finger, and within a couple of hours all of the swelling was gone.

A: We have been writing about raw onion for stings for more than 20 years. Eric Block, an expert on onion chemistry, told us that onions contain an enzyme that can break down the inflammatory compounds that cause pain and swelling in response to a sting.

Although this therapy can help many, those who are allergic to insect stings must be alert for a life-threatening reaction called anaphylactic shock. This requires an epinephrine injection and emergency medical attention.

Q: I had a wart on my right ring finger for years. Although the dermatologist had frozen it and cut it off several times, the wart still was there.

I needed nerve surgery on that finger, but the wart was in the way. My hand surgeon told me to put nail polish or instant glue directly on the wart and keep it on for three weeks. That would cut off the air supply a wart needs to survive and grow.

When I returned for my pre-op visit, the wart had died and popped out when hard pressure was applied, and the nerve surgery proceeded.

A: You are not the first person to tell us that instant glue can be successful against warts. We’re glad this remedy worked for you.

Q: I’ve been eating gin-soaked raisins for more than a year, and it helps me tremendously with my joint pain.

I put the raisins in a casserole dish, and, after pouring in the gin, I cover the dish with a dish towel. This allows more of the alcohol to evaporate. I let it sit for nine days, stirring every day or so. Then I place the raisins in a jar with a lid and eat nine daily.

They taste delicious — no alcohol taste whatsoever! If you taste the alcohol, you may not be allowing enough of the gin to evaporate.

A: We appreciate your detailed description for preparing gin-soaked raisins. Many people have reported success with this remedy. But it’s not for everyone. Here is a cautionary tale:

“I am an alcoholic. Up until a few weeks ago, I had several years of sobriety. I also have arthritis in my hands and thought about using your raisin and gin recipe. I mistakenly thought the gin would be transformed by the raisins and would be safe for me to use.

“I’m now back in the nightmarish hell of drinking again. Please warn people that if they have a problem with alcohol, they should avoid this medicine.”

Navarro brings business online

Navarro Discount Pharmacy, a Hispanic-owned pharmacy chain and an MBF Healthcare portfolio company, has added e-commerce capabilities to its existing website. The retailer also plans to add in the fall an interactive social media retail forum, video, content on family and health-related topics, and reviews.

“The e-commerce capability allows us to better serve our loyal customers already familiar with the Navarro brand and its discount pricing, and, in addition, [allows us to] reach out to the growing Hispanic population in the [United States], Central/South America, the Caribbean and internationally,” stated Juan Ortiz, CFO of Navarro Discount Pharmacy, which operates 28 stores.

Compare Prescription Drug Prices on the NJ Registry

The State Division of Consumer Affairs reminds consumers of an important online resource, the prescription drug price registry.

According to state officials, prescription drug prices can vary as much as $60 per unit from one New Jersey pharmacy to the next, depending on the specific drug and other factors.

The registry is maintained by the Division of Consumer Affairs. It lets consumers compare the prices offered at different pharmacies for the 150 most frequently prescribed drugs. The website allows consumers to input the prescribed medication and dosage type, and their town name or ZIP code, for a list of the prices offered by specific pharmacies in their area.

“New Jersey’s Prescription Drug Price Registry is an easy-to-use resource in English and Spanish, that can put hundreds of dollars back into consumers’ pockets,” Thomas R. Calcagni, Acting Director of the State Division of Consumer Affairs. “Medication is expensive, but the Division of Consumer Affairs is doing what it can to help consumers take care of their health and their bank accounts.”

Consumers buying prescription medications – especially if they are buying from more than one pharmacy – should always communicate with the pharmacist about their medical condition and the full list of drugs they are taking. Failure to communicate with the pharmacist may result in purchasing drugs that are not compatible with each other or with the patient’s health.

The Division of Consumer Affairs updates the Prescription Drug Price Registry each week, from claims that licensed New Jersey pharmacies submit to the State Department of Human Services, Division of Medical Assistance and Health Services regarding their “usual and customary” prices.

Actual prices charged may vary from those listed on the registry website. While using the registry to make informed shopping decisions, consumers should call or visit their pharmacy to learn the current price before buying.

Pharmacy Industry News: ‘New career avenues are being created in the pharmaceutical industry’

‘New career avenues are being created in the pharmaceutical industry’

The pharmaceutical industry is more than just about manufacturing pills. It is a knowledge—driven industry, shifting gears as it addresses new challenges. Manish Gupta, Chief Executive Officer, Indegene Lifesystems elaborates on the news skill sets required by pharma professionals to face up to these challenges

What are the top three challenges facing the global pharma industry?

With a large number of drugs nearing patent expiry and pipelines getting weaker with fewer blockbuster molecules, major pharma companies will lose about 15 per cent to 40 per cent of their revenues. It is expected that around $ 81.5 billion worth of branded products will go off-patent by 2015. This impending patent cliff is translating to an even higher pressure on pharma companies to reduce costs in developed markets in the next couple of years.

The other significant trend is the importance of emerging markets, which is growing in size due to demographics and rising income levels. The rules of the game in emerging markets are different from developed markets, and global pharma companies are trying to suitably align their strategies and organisations.

Finally, there is increasing pressure from regulators and payors. The focus is no longer only on safety but also on patient outcomes. This pressure will increase further as developed countries try to bring down their health care costs and drive accountability to all critical stakeholders.

How is the pharma industry responding to each of these?

As far as cost pressures are concerned, the pharma industry is very aggressively rationalising cost structures across board. Layoffs, reorganisations, shutting down of facilities, outsourcing/offshoring, and new commercial models are among the many changes being implemented. We believe that offshoring and new commercial models will gain significant traction in the next few years.

The growth rates for most of the major pharma companies in emerging markets are significantly higher than those in developed markets where pharma companies execute several different and interesting strategies and initiatives that include launch of new patented products/generics, tighter integration with global headquarters, and more empowerment to regional market teams.

We also see companies setting up teams and strategies to work with and add value to payors and patients.

What kind of individual skill sets are now required by the pharma industry to meet these challenges?

To meet these challenges, pharma companies need varied and specialised talent. This has paved the way for talented professionals from clinical, pharmacological, pharma, marketing, and legal disciplines.

What kind of career opportunities can medical graduates hope for with a pharma company?

Medical graduates can aspire for multiple opportunities with pharma and services companies like Indegene. Some of these include medical writing (covering regulatory, publication or content development for physicians, patients, and sales force), programme management or client servicing for global companies, and Medical Service Liaisons (MSLs) with the focus on scientific selling. Given the fact that global pharma companies will launch new products in India, there will be a huge demand for MSLs. Medico marketing involving work in/with the marketing teams of pharma companies in brand management and medical affairs, involving work in/with the medical affairs team of pharma companies in the areas of publications, scientific communication, medical information management, etc are two other areas of opportunity as well.

What kind of career opportunities can a law graduate hope for with a pharma company?

It takes multidisciplinary teams with a variety of skills to develop and market effective and safe drugs. Pharma companies are seeking to hire graduates with supplementary knowledge relevant to the pharma industry, like professionals from law or patent or IPR understanding in addition to the requisite domain knowledge. Relevant understanding of the allied subjects in addition to core clinical/pharmaceutical knowledge will be key differentiators. Law graduates can also look at KPOs in addition to pharma companies.

What kind of jobs areas are pharma companies recruiting for? What kind of skills sets are most in demand?

Pharma companies in India are expanding their sales force and medical affairs teams. However, in the developed markets, there is a rapid reduction in sales force as companies are realigning themselves to the new landscape. With the increased role of regulators and payors in these developed markets, new career avenues are being created in areas like health economics and outcome research, market access, and account management.

Rationalisation of jobs in developed markets has led companies like Indegene to expand and provide services to global pharma companies. Jobs are being created across board in Indegene for skills like medical writing, medical affairs, tele-detailing, digital marketing, medical information management, analytics and information research, technology, graphics design, medical editing, other creative capabilities, and a host of other skills. A platform like Indegene not only enables people to engage with major pharma companies across different geographies but also across different functions.

What kind of changes are required in pharmacy and medical syllabi to meet the evolving needs of the pharma industry?

Unlike in the West, India does not have specialised medical writing and communication courses. In fact, for the most part, medical writing and communication is not a part of the current pharma and medical syllabi in India.

This is a significant gap that needs to be bridged. Such courses will enable different skills to come together. So, apart from domain and technical knowledge, individuals will get to understand the challenges and nuances involved in effectively communicating medical/scientific information to a broad range of target audience, including physicians, patients, sales force, regulators, and payors.

CVS Caremark Corporation Plans to Initiate “To Your Health”

CVS Caremark Corporation NYSE:CVS recently announced that company plans to bring its “To Your Health” free health screening program to Chicago, IL on Saturday, June 4.

The program is designed to provide free preventive health screenings for Chicago area residents at more than 80 events now through September as a way to help citizens determine their risk for chronic diseases and get them on a path to better health.

The program will ignition with “The Makeover Mile”, a one mile health walk led by medical and diet expert Dr. Ian Smith to fight obesity and persuade Americans to lead healthier lifestyles. The walk will start at 11:30 am at the University of Illinois at Chicago located at 901 West Roosevelt Road in Chicago.

CVS is basically a Drug Stores industry company and holds a portfolio of about 201,000 employees. Company’s stock price is increasing for the most recent quarter as CVS Caremark Corporation’s three consecutive months’ share growth is +15.10% with its relative strength index of 88. However on semiannual basis its last six consecutive months’ growth recorded +20.50% with relative strength index of 48.

The sales of company have increased 21.11% during last five consecutive years and resulted $98.53 billion for last consecutive twelve months. The company’s growth of its sales in recent quarter vs. year ago quarter recorded 8.90% which is below the Industry benchmark of 9.30% and below Standard and Poor’s benchmark of 12.10%.

The current stock price of company on June 02, 2011 increased 0.39% and settled to the closing price of $38.53. The company’s average volume is 12.74 million shares. Its fifty two week range was $26.84-$39.50. The total market capitalization remained $52.24 billion.

CVS current stock price is moving above its 52 week low by 45.01% and moving below from 52 week high price by 2.46%. CVS last month stock price volatility remained 1.49%. In its share capital CVS has 1.36 billion outstanding shares while company’s float is 1.35 billion shares. Ownership of company is 86.00% institutional while company’s beta coefficient is 0.78.

S N Desai, doyen pharmaceutical industry, passes away

S N Desai, IPA past president and a well known personality of the pharmaceutical industry, passed away on May 18, 2011 after a brief illness.

Born on 16th January 1926, S N Desai was a double graduate from the University of Mumbai and was the alumnus of the first batch of L M College of Pharmacy, Gujarat.

Over the past six decades, Desai’s initiative and contribution towards the betterment of the pharmaceutical industry standards has been immense, mainly monitoring multifunctional activities such as pharmaceutical operations, administration and project management with various companies like May & Baker, Pharmed, Geoffrey Manners, Zandu, Charak and Cadila. As a Consultant, he shared his expertise in the areas of technical audits, upgradation of facilities and development of MIS activities.

Desai’s tremendous zeal and enthusiasm got reflected in his active association with IPA till date. He was one of the senior most central executive council members with IPA for more than 55 years. He was the Treasurer of Maharashtra State Branch and subsequently took up the position of Jt. Secretary, secretary, vice president and president. During his tenure here, he was instrumental in organizing low budget workshops/ seminars and two Indian Pharmaceutical Congresses in Mumbai in 1956 and 1977. He was also actively associated with Indian Pharmaceutical Congress Association (IPCA) and was a Treasurer of IPCA for three years.

Desai has been a pillar of strength to IPA at National level. He was the treasurer, vice president and subsequently, president of IPA during the year 1996-98. During his president-ship, IPA took a very positive step towards establishment of four divisions, namely Industry, Regulatory, Education, and Community Pharmacy. The first ever convention of PDA – IPA was held under his president-ship. He played a key role as a Convener of IPA Golden Jubilee Celebrations under the president-ship of late Ramanbhai Patel.

For his outstanding contribution to the profession of pharmacy, Desai had been awarded IPA Fellowship in 1995, IPA – IRF Life Time Achievement award in 2003 and Acharya P C Ray Memorial award in 2009.

Desai was always eager to help young professionals. His sad demise is a big blow to the pharmacy community in general and IPA in particular who owes him gratitude for his noteworthy contribution in enhancing the status and standards of the profession.

« Older Entries

Monthly Archives: June 2012

Pfizer pullout means some patients are missing out on drugs

Growing Prescription Drug Shortages Alarm Falls Pharmacists

Pharmacist tells how to identify fake drugs shop

Supreme Court sides with pharmaceutical industry in two decisions

The People’s Pharmacy: Apple juice and allergy medicine don’t mix

Supreme Court sides with pharmaceutical industry in two decisions

Pharmacists Choose Nature Made as the Leading VMS Brand for Sixth Year

Supreme Court sides with pharmaceutical industry in two decisions

Fierce Competition Prompts Changes for Rite Aid and Walgreen

Express Scripts continues on long path to growth, analysts say

D3 Names Christine Stoffel VP Business Development and Strategic Alliances

Muscat Pharmacy Group reinstates its support for MedHealth and Wellness 2011 Exhibition

Supreme Court sides with pharmaceutical industry in two decisions

Express Scripts continues on long path to growth, analysts say

Independent Pharmacies Upset Over State Employees’ Prescription Drug Plan

US Stocks Post Fourth-Straight Gain As Worries Over Greece Ease

Alliance Data’s LoyaltyOne Business Signs Long-Term Renewal With Top-Ten AIR MILES® Sponsor, The Jean Coutu Group; Quebec’s Drugstore Retail Leader and One of Canada’s Leading Pharmacy Chains

Next-Generation Pharmacist™ Awards Program Announces 2011 Finalists

Pharmaceuticals and philanthropy

Montel Williams – I’m Now In The Weed Business

Cardinal Health Extends Radiopharmaceutical Manufacturing Network, Opening its First Cyclotron in Georgia

Counties set to stir competition in health sector

Walgreen Sheds PBM Biz

Tim Canning to Join Omnicare as Chief Marketing Officer

Letting the camel into the tent

Cardinal Health, Prime Therapeutics Renew Primary Distribution Agreement

SAS® Analytics Help High-Risk Patients Stay on Therapeutic Track

Regulating temporary import of frozen foods

Medco May Seek Acquisition With Biggest Contract Imperiled

Fresno’s Renge’s Pharmacy closes its doors Wednesday

Splitting the Difference: Workshops Highlight Industry, Medical Relationships

People’s Pharmacy: home remedies for stings, warts and arthritis

Navarro brings business online

Compare Prescription Drug Prices on the NJ Registry

‘New career avenues are being created in the pharmaceutical industry’

CVS Caremark Corporation Plans to Initiate “To Your Health”

S N Desai, doyen pharmaceutical industry, passes away

Categories

Recent Posts

Archives

Tags

Links

Authors

Meta