Washington, DC; 09.09.04 — A new, open letter from the independent pharmacy lobby crowing about their record profits and gross margins despite the “bad news” of a Medicare drug benefit and discount drugs cards shows once again that the independent pharmacy lobby is more concerned about protecting their bottom line than helping seniors access affordable prescription drugs, the Pharmaceutical Care Management Association (PCMA) said today. PCMA is the national association representing America’s pharmacy benefit managers (PBMs).

“For the past five years, the independent pharmacy lobby has opposed effort after effort to make prescription drugs more affordable and accessible for seniors,” said PCMA President Mark Merritt. “Now they’re crowing about ‘thriving’ with record profits and sales despite the ‘bad news’ of the Medicare drug benefit. Instead of pining for days gone by when they could charge seniors and the uninsured the highest drug prices of all consumers, the independent pharmacy lobby should work collaboratively with seniors, PBMs, health plans, and others to make prescription drugs more affordable for all Americans.”

The open letter from the National Community Pharmacists Association (NCPA) is running in the current issue of at least one trade magazine. In the letter, the NCPA laments “all of the ‘bad ‘news’ that bombards us on a daily basis in our pharmacies,” including the mail-service pharmacy option, the Medicare drug benefit, and Medicare drug discount cards. The NCPA goes on to note that “despite all the negative forces at work against us, independents are doing a great job of surviving and thriving.”

And ’surviving and thriving’ they are. This past June, the NCPA released data today from their forthcoming report, 2004 NCPA-Pfizer Digest. The report is funded by an unrestricted grant from Pfizer, Inc. The report confirms that independent pharmacies raked in record profits and sales in 2003. Among the key findings from their own presentation, “Independent Pharmacy Today:”

· In 2003, independent pharmacy comprised a $77 billion marketplace. Nearly 60 percent of independent pharmacies reported sales of more than $2.5 million; with 30 percent reporting sales of more than $4 million;
· Total store sales climbed at a double-digit growth rate in 2003, up 12 percent from 2002;
· Independent pharmacy prescription sales increased 10 percent in 2003, compared to 2002;
· Independent pharmacy gross margins stood at 23.8 percent in 2003, the second consecutive annual increase;
· Independent pharmacy net profit is at its highest levels in at least ten years; and
· The number of independent pharmacies increased in 2003 to 23,956 pharmacies

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The Pharmaceutical Care Management Association (PCMA) is the national trade association representing America’s pharmaceutical benefit managers (PBMs). PCMA member companies provide pharmaceutical care management services to more than 200 million Americans.

Contact Information:
Phil Blando
202-207-3614