For many years, Rexall has been living in Shoppers Drug Mart's shadow, but the chain’s new ownership could help revitalize its position in the Canadian market.
What happened: Canadian private equity firm Birch Hill Equity Partners will scoop up the Rexall pharmacy chain from its U.S. owner, McKesson, in a deal that includes roughly 400 brick-and-mortar pharmacies as well as the popular e-commerce site Well.ca.
- Since McKesson bought Rexall in 2016, pharmacies have had to cut prices for some generic drugs and have seen a drop in government subsidies and a rise in labour costs.
- After feeling the hit to profitability, the company decided to shut down about 10% of Rexall locations across the country. It put the chain up for sale earlier this year.
Why it matters: Provinces are expanding the type of care pharmacists can provide in an effort to improve Canadians’ access to nonurgent healthcare. A path to a more profitable Rexall could lie in medical services like vaccinations, lab tests, and consultations.—LA