Rite Aid gets court approval for $575 million Elixir sale

Rite Aid

09/01/2024 16:20

By Dietrich Knauth
       NEW YORK, Jan 9 (Reuters) - Pharmacy chain Rite Aid Corp
 RADCQ.PK  on Tuesday received bankruptcy court approval to sell
its Elixir pharmacy benefit manager business for $575 million. 
    Rite Aid filed for bankruptcy in October with an agreement
to sell the Elixir business to pharmacy benefit manager (PBM)
MedImpact Healthcare Systems for that price. 
    The company continued to shop Elixir to more than 30
potential buyers during its bankruptcy, but no bidder offered a
higher price than MedImpact's initial offer, Rite Aid attorney
Ross Fiedler said on Tuesday at a bankruptcy court hearing in
Trenton, New Jersey.
    Fiedler said the Elixir sale is a critical part of Rite
Aid's effort to raise money and re-focus on its retail pharmacy
business in bankruptcy. 
    He told U.S. Bankruptcy Judge Michael Kaplan, who is
overseeing the company's Chapter 11 proceedings, that the sale
will likely close within the first quarter of 2024. 
    Kaplan approved the sale during the court hearing.
    Rite Aid, one of the largest U.S. pharmacy retailers, cited
its high debt, revenue declines, increased competition, and
opioid litigation as factors that caused its bankruptcy.
    Rite Aid closed 200 stores before its bankruptcy, and has
continued to close more stores as its Chapter 11 case proceeds.
    PBMs negotiate drug prices and rebates with drugmakers on
behalf of employers, health plans and other clients. 

 (Reporting by Dietrich Knauth, Editing by Alexia Garamfalvi and
Bill Berkrot)
 ((Dietrich.Knauth@thomsonreuters.com;))