Posted On: 11/22/2014 1:36:27 PM
Post# of 17653
This is totally off topic but I owned this company long time ago but I wanted to put it up here because it has some good stuff in it.
Slow progress, retesting it's high, better margins and patent cliff expirations. if your bored it's not a bad read anyway. There are 4 pages
http://seekingalpha.com/article/2675255-why-r...l-retest-9
Why Rite Aid Will Retest $9
Nov. 12, 2014 4:08 PM ET | About: Rite Aid Corporation (RAD), Includes: CVS, WAG
Summary
•2 years left in patent cliff, which means higher margins for pharmacies.
•Generic introduction delays and supply chain problems are temporary; these problems forced RAD to lower EPS guidance.
•RAD is now a growing company.
•RAD is cheap relative to competitors.
Rite Aid Corporation (NYSE: RAD) shares surged from $1 to north of $8.50 in less than two years' time, but have since retraced to $5.50. While the stock has still performed well over the course of several years, there are three reasons in particular to suggest that shares will retest 52-week highs.
Continued benefits from patent cliff
Evaluate Pharma estimates that between 2011 and 2016 brand drugs will lose $133 billion in combined sales thanks to the expiration of patents, and the introduction of generics. This span is called the patent cliff. Following 2016, generic introductions will slow down, with Fisher Investments Research estimating just $18.3 billion in lost drug sales from 2016-2020.
That said, generic drugs create higher profits for pharmacies. There are many reasons, the first of which is a larger gap between wholesale and retail drug prices, thus increasing the pharmacy's share. The second reason is that generic drugs are almost always bought in bulk, thereby reducing logistical costs.
Slow progress, retesting it's high, better margins and patent cliff expirations. if your bored it's not a bad read anyway. There are 4 pages
http://seekingalpha.com/article/2675255-why-r...l-retest-9
Why Rite Aid Will Retest $9
Nov. 12, 2014 4:08 PM ET | About: Rite Aid Corporation (RAD), Includes: CVS, WAG
Summary
•2 years left in patent cliff, which means higher margins for pharmacies.
•Generic introduction delays and supply chain problems are temporary; these problems forced RAD to lower EPS guidance.
•RAD is now a growing company.
•RAD is cheap relative to competitors.
Rite Aid Corporation (NYSE: RAD) shares surged from $1 to north of $8.50 in less than two years' time, but have since retraced to $5.50. While the stock has still performed well over the course of several years, there are three reasons in particular to suggest that shares will retest 52-week highs.
Continued benefits from patent cliff
Evaluate Pharma estimates that between 2011 and 2016 brand drugs will lose $133 billion in combined sales thanks to the expiration of patents, and the introduction of generics. This span is called the patent cliff. Following 2016, generic introductions will slow down, with Fisher Investments Research estimating just $18.3 billion in lost drug sales from 2016-2020.
That said, generic drugs create higher profits for pharmacies. There are many reasons, the first of which is a larger gap between wholesale and retail drug prices, thus increasing the pharmacy's share. The second reason is that generic drugs are almost always bought in bulk, thereby reducing logistical costs.
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