Sept 30 (Reuters) – Grocery retailer Kroger Co (KR.N) mentioned on Friday it has despatched Cigna Corp’s (CI.N) subsidiary Categorical Scripts a written discover of its plan to terminate their pharmacy supplier settlement for business prospects resulting from an “unsustainable” pricing mannequin.
Kroger mentioned it has made a number of makes an attempt since February to barter with the pharmacy profit supervisor for a “extra equitable and honest contract that lowers value, will increase entry, and delivers larger transparency, however there was little to no progress up to now”.
Kroger mentioned greater than 90% of Kroger Well being’s prospects is not going to be affected by a termination of the deal, but when a brand new settlement is just not reached by Dec. 31, most Categorical Scripts’ business prospects will not be capable to fill prescriptions at Kroger shops.
Cigna purchased Categorical Scripts in 2018 in a $54-billion deal, creating one of many greatest suppliers of pharmacy advantages and insurance policy in america.
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Reporting by Mrinalika Roy in Bengaluru; Enhancing by Shailesh Kuber
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