The United Auto Workers' mandatory mail-order pharmacy program is hurting Rite Aid's prescription sales, the company said Sept. 7.

The chain drug store lowered its sales, net income and earnings guidance for fiscal 2005 based on current sales trends.

For the five weeks ended Aug. 28, Rite Aid's same-store pharmacy sales were up 1.8% over last year. For the quarter ending the same date, same store sales rose 2.1%.

Rite Aid said pharmacy growth at stores with the highest UAW business was about 2% lower than its other stores in August. UAW adopted the mandatory mail program for chronic medications in January.

The chain also cited decreasing third-party reimbursement for generic drugs as a factor in lowering its guidance.

There has been an overall slump in pharmaceutical industry growth, the company added. The firm cited IMS Health's prediction that U.S. sales growth will be 11% for 2004.

- Scott Steinke

Rite Aid Sales Hurt By Mandatory Mail, Generic Rx Reimbursement

More from Archive

More from Pink Sheet