Rite Aid completed the sale of its Elixir pharmacy benefit management (PBM) company to another PBM, MedImpact Healthcare Systems for $575 million, the drugstore chain said Thursday.
Once described by Rite Aid executives as the company’s “crown jewel,” Elixir became a key asset to sell after the drugstore chain filed for bankruptcy protection in October. Elixir includes mail and specialty pharmacies, prescription discount programs and has 1.1 million covered PBM plan enrollees, Rite Aid has said.
“We are pleased to finalize the sale of Elixir, marking another important milestone in our transformation to strengthen our long-term financial position,” Rite Aid chief executive officer and chief restructuring officer Jeffrey S. Stein said.
It’s the latest effort by Rite Aid to restructure the drugstore chain, which has already closed about 200 stores since its filing for Chapter 11 bankruptcy protection with potentially more retail locations to close in coming weeks and months.
“We believe this transaction is a great outcome for Rite Aid and our stakeholders, including our Elixir colleagues and the customers, clients and members they serve,” Stein said. “Importantly, this divestiture will better position Rite Aid for long-term success as we continue to evolve our portfolio to focus on the healthcare products, services and solutions that are core to our future.”
