Brad Gallagher, co-leader of the Pharmacy and Health Care Controversies Teams, was featured in the Buffalo Business First article “Rapidly Changing Industry Sparks New Barclay Damon Practice Group” about the creation of the firm’s national pharmacy team in response to sweeping changes across the industry, including consolidation, widespread retail pharmacy closures, and increased regulatory scrutiny. “With the amount of independent pharmacies and the issues we were seeing, and clients we were dealing with, it made sense to have an industry-specific team,” Brad said.
Recent market pressures—including the closure of Rite Aid stores and hundreds of CVS and Walgreens locations—have intensified challenges for pharmacies and the communities they serve. Brad noted that these trends are contributing to “pharmacy deserts” and reduced access to care, particularly in underserved areas. “There’s been a lot of pharmacy closures and a lot of pressures particularly on retail pharmacies,” he said, adding that “in a lot of communities, it’s easier to see your pharmacist than it is to see your doctor.” He emphasized that local pharmacies play a critical role in providing accessible, routine care, from vaccinations to over-the-counter recommendations.
At the same time, new federal legislation—such as pharmacy benefit manager (PBM) reforms included in the Consolidated Appropriations Act—aims to improve pricing transparency and address reimbursement challenges facing pharmacies. Brad highlighted that market consolidation among PBMs and unfavorable contract terms have strained pharmacy profitability: “Pharmacies have to contract with one of those three to be a viable business… [and] for a lot of prescriptions that go out the door, your local pharmacy is losing money.” He added that new provisions recognizing “essential” pharmacies could help sustain vital community providers.
Subscribers can read the full article here for additional insights into these industry developments.