CVS pulling out of Puerto Rico (22 stores)

[veteran+]

Being that PR is a U.S. commonwealth, not a state they have lower wages and can buy from sources not available to stores in the States. Also most of our pharmaceuticals were made in PR until the 90s, I don’t know if some of that is still in existence.

Puerto Rico is extremely limited (by U.S. design) in whom they can buy from, what they can import and even what they can export and to whom. Prices are also highly regulated by the U.S.

The U.S. has a powerful stranglehold on Puerto Rico creating a scenario for failure.

Do you have a link that better explains how that works pertaining to PR retailers buying prescription drugs and being forced to a limited number of options by the US?

Looking at the ad the buyer has posted, many of those items are not US items. They are from suppliers elsewhere in the world.

I read CVS is paying pharmacy techs $18-$19/hr in PR and the buyer only pays $11/hr... I am still wondering if the buyer has a way to source cheaper drugs...

You would have to google "trade laws" that were written by the U.S. Government regulating Puerto Rico's commerce. It is a lot of reading and dissecting. NOT a pretty picture for Puerto Rico.

[BatteryMill]

Going to be tricky for Target, if they ever choose to set up operations there.

Many of these were in the CVS y Mas format.

Not all of them are? Wonder if that varies between neighborhood and tourist areas

[ClownLoach]

Going to be tricky for Target, if they ever choose to set up operations there.

About ten years ago everyone wanted to expand into Puerto Rico, Mexico and Canada.

I think those days are long over with rising transportation costs and a general disinterest in financing brick and mortar expansions.

Target barely survived the Canada fiasco and if they hadn't been able to push all the losses into that division and use Canadian bankruptcy laws to wipe them out then it could have taken down the entire company. I do not see them doing any expansion past the 50 states any time in the future, if ever. The fact is that it is too much of a distraction from the core business, and for what? A couple of high volume boxes in the few parts of the territory that can fit them?

[Alpha8472]

Puerto Rico used to make many medications, however that changed when the hurricane devastated the island and led to the power being out for a long period of time.

At the pharmacy in California that I work at, I do not see any medications made in Puerto Rico anymore. It has been years since I saw any. Puerto Rico used to make levothyroxine for thyroid problems. The most common manufacturer moved production to Europe years ago.

Strangely enough, Europe makes many medications. However, much more comes from India now. Since Puerto Rico is part of the US, prescription medications have to meet strict standards. Cheaper medications with lower standards such as those sold in Mexico would not be sold in Puerto Rico. Many medications would have to be transported from the mainland via drug distributors.

[storewanderer]

I did research and it looks like PR is stuck in the same nasty tangled up web for prescription drugs as the US (absurdly high costs and the insurance system). So it is interesting CVS couldn't make money there. It appears both Aetna and Caremark operate in PR.

[Brian Lutz]

I've also seen a decent number of prescription drugs being produced in Israel.

[Alpha8472]

I have seen many drugs made in Israel. However I have seen some weird stuff from insurance plans. One insurance administered by Caremark will not pay for atorvastatin made by Teva Pharmaceuticals. Teva is an Israeli company.

Another issue I have seen is a Catholic Health Plan that refuses to pay for birth control.

I have seen drugs made in China only in the past year or so when Akorn ceased operations. Before that my pharmacy never had any drugs made in China.

[NelRx]

It will be illegal to buy drugs that are not FDA-regulated. Puerto Rico has to abide by US federal laws

[pseudo3d]

I have seen many drugs made in Israel. However I have seen some weird stuff from insurance plans. One insurance administered by Caremark will not pay for atorvastatin made by Teva Pharmaceuticals. Teva is an Israeli company.

Another issue I have seen is a Catholic Health Plan that refuses to pay for birth control.

I have seen drugs made in China only in the past year or so when Akorn ceased operations. Before that my pharmacy never had any drugs made in China.

Not get into ethics or morality but birth control is neither overly expensive (for Plan B, at least) or a chronic condition.