McKesson Canada has bought the banner business of the Remedy’s Rx Group and the Remedy’s Rx name. The acquisition doesn’t include Remedy Holdings (RHI), which owns the corporate stores and long-term care business.
“This acquisition demonstrates McKesson Canada’s long-standing commitment to the health of the independent pharmacy segment in the Canadian market,” says a statement released about the acquisition.
It marks McKesson’s second major deal in recent years, having paid Katz Group $920 million for its IDA/Guardian banner and Medicine Shoppe franchise network three years ago.
At the time of that purchase, Desjardins Capital Markets analyst Keith Howlett pointed out that the company has a vested interest in ensuring independent pharmacies remain healthy. That’s because the large chains self-distribute drugs, thus bypassing wholesalers like McKesson.
The analyst predicted the company would fare well in the community drugstore market. “McKesson is well capitalized and an expert in the provision of retail pharmacy services,” he said.
McKesson started as the National Drug and Chemical Company of Canada in 1905. The global supply chain and health care services company has locations and distribution centres across Canada.
The McKesson Canada named was adopted in 2002. Since then, the company created McKesson Logistics Solutions, added the PACMED line of high-speed unit dose packagers to its automation, bought the assets of Phase 4 Health, acquired Groupe PharmEssor Inc., and partnered with the provincial government in Nova Scotia to develop HealthLink 811, a seven-day-a-week, 24-hour Telecare service.
According to its website, Remedy RX is the “fastest-growing independent pharmacy network in Canada.” The company offers its pharmacy owners services such as management support, marketing and advertising programs, a private label line, access to capital, succession planning and logistics and distribution.
This article first appeared on CanadianHealthcareNetwork.ca