Canadian Pharmacies in a predicament

Monday, May 23, 2011 General News
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With the increase in the number of online pharmacies, various new issues have been observed in the online markets dealing in generic solutions. With such new implements, certain things are completely changed and the major impact has been observed by
the existing pharmacies with a reduced profit margin. The reason behind is none other than the inventions and path breaking patterns that have been introduced by these pharmacies, these regulations prove extremely beneficial in attracting customers and
increasing sales. Canada’s largest chain of medicine providers have been experiencing gloomy days, due to lowered profits in the second quarter. This has been observed in very crucial phenomena, where they are already struggling with profound cuts in the reimbursement rates on generic drugs as per the government’s impositions. According to shoppers Drug Mart Corp. the revenue declined from 3.2 percent to $118 million, this is equivalent to 54cents per share for three months with the final date of 26th march. In comparison the quarterly profits in the last years, it benefitted from $12 million increase on the leaseback on some of the retail properties. Even though the profits in the second quarter declined; according to the expectations and predictions of analysts, it’s still better and did not exceed their figures. A retailer when interviewed on Wednesday said, the sales figures rose 2.7 percent to $2.3 billion as the customers focus was diverted to cosmetics and no prescription drugs. Also an unexpected jump up was experienced in the sales figure of front store sales with a surprising rise of 6 percent to $ 1.2 billion. Front store sales are something where drugs are sold outside the actual pharmacy. However, the store sales of such items grew by 4 percent. Many innovative attempts and practices are carried out in order to increase the sales rate. Shoppers used techniques by providing special offers and discounts that would drive sales. According to the chief financial officer of “Shoppers”, Brad Lucknow discussed with the analysts, that a consistency through the first quarter has been observed considering the highly promotional consumer environment. This is perfectly moving on as per our focus on the marketplace, this has shared a significant contribution in increasing the gains. However, when prescription drugs are concerned, the sales were not satisfactory. It fell down to 0.4 percent to $1.150 billion. According to the experts, this drain in profit share would be the impact of prescriptions that were offered at lower average rates. However, the gross prescription figures increased 3.9 percent, but the deductions for the government funding for securing generic drug plans made the pharmacists receive lesser0 According to “Shoppers” it has been making progress on it’s throughout efforts to encourage profits and sales figures while reducing the costs concerning Ontario to half the amount it reimburses to pharmacies for the prescriptions of generic drugs. As per expectations this attempt would save around $750 million of a province. Its own private label generic drugs were also turned on for sales. Shoppers claimed that, it has a federal approval for its 73 different molecules. Various changes are on its way in order to make things work out. The drugstore is in quest for a new president and chief executive officer, as the existing personnel Jurgen Schreiber is planning to pursue another opportunity. Find out more information on the same at: Name: Claudia loens Company Name: Corx Pharma Inc. Address: Bloom-201-B, Next to McDonalds, 72-Ways Line, Anaheim Phone No.: 1-645-506-9245 Email: Website:

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