ICYMI, Rite Aid recently released the financial results for its most recent fiscal quarter, which ended on May 29. Rite Aid’s pharmacy benefit manager (PBM) business, Elixir, continues to flail in an increasingly challenging market.
I’ve long been skeptical of Rite Aid’s PBM strategy. As you will see below, last quarter’s results further validated my skepticism. Synergies with the company’s retail pharmacy business are minimal—and shrinking.
Rite Aid’s management team does seem committed to fixing and then growing the business. But as I see it, the company should either unload Elixir before it loses even more value or join with a larger company that can offer a viable platform for success.
I’m sure many investors wish that Amazon would simply buy Rite Aid and solve their pain.
On the other hand, free advice is often worth what you paid for it. Read on and see what you think the company should do.
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