Rite Aid Makes Peace With Drug Supplier, One Day After Lambasting It in Lawsuit
Because many Rite Aid stores are in communities without other pharmacies, Rite Aid had argued that canceling the pact would "put millions of lives at risk."
October 18, 2023 at 07:38 AM
2 minute read
BankruptcyAs it navigates Chapter 11 bankruptcy, Rite Aid and its key drug supplier, McKesson, have made peace, at least for now, averting the risk that McKesson would halt drug deliveries to its 2,100 stores as early as this week.
In a fiery adversary lawsuit filed Monday, Philadelphia-based Rite Aid's legal team at Kirkland & Ellis had accused Irving, Texas-based McKesson of claiming to cancel the supply agreement, a move Rite Aid called a cynical negotiating ploy that used the well-being of its pharmacy customers as a bargaining chip.
Following through on cancellation would cause "human pain and suffering" and "put millions of lives at risk," the complaint said. It said many Rite Aid stores are in underserved communities, where its customers have no nearby pharmacy alternatives.
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