Court Approves Rite Aid’s Sale of Elixir PBM to MedImpact

The U.S. Bankruptcy Court for the District of New Jersey has approved Rite Aid’s sale of Elixir Solutions Business to MedImpact Healthcare Systems, an independent pharmacy benefit solutions company. The transaction is expected to close in the first quarter of 2024. The closing sale price is $575 million, a spokesperson said.

Elixir Solutions is a PBM that began in 1999 as MedTrakRx, which merged with EnvisionRx in 2014 and then became a subsidiary of Rite Aid in 2015. Elixir Solutions provides pharmacy benefit management, mail order and specialty pharmacies, and provide prescription benefits to group and individual Medicare plans.

MedImpact is a PBM that serves health plans, self-funded employers and government programs and serves about 55 million people.

In October 2023, Rite Aid filed for Chapter 11 bankruptcy and announced that it had reached an agreement with its creditors. Selling the PBM division Elixir Solutions to MedImpact is part of Rite Aid’s restructuring plan that aims to reduce debt. Elixir Insurance, however, is not included in the Chapter 11 process. Rite Aid has also received a commitment for $3.45 billion in new financing from its lenders.

Jeffrey S. Stein, who was appointed the CEO in October to oversee the company turnaround, said the sale of Elixir Solutions and other efforts aim to create a “Rite Aid 2.0.” Stein is founder and managing partner of Stein Advisors, a financial advisory firm that provides consulting services to public and private companies.

In a notice on the company’s website, Rite Aid indicated it is closing some underperforming stores, but pharmacies remain open and continue to fill prescriptions. A list of open stores can be found here.