A Rite Aid store is exposed in downtown Los Angeles, California, USA, on October 16, 2019. Photo taken on October 16, 2019.
Mike Blake | Reuters
Rite Aid CEO Heyward Donigan said he expects retailers to soon have a bigger role – and sooner – in the launch of the Covid-19 vaccine, as states and counties are under pressure to accelerate the pace.
Vaccines are being phased out, with Americans most at risk, such as health professionals and nursing home residents, taking priority.
Rite Aid is expected to be part of phase two, when injections become available to the general public, those who do not qualify for phase one because of their age, occupation or lack of underlying medical conditions, said Donigan , speaking at the JP Virtual Morgan Healthcare Conference on Monday. The company is one of at least 19 drugstores and grocery stores that have partnered with the United States Department of Health and Human Services to deliver injections in their stores.
“I think it will accelerate faster and faster than that,” she said.
So far, the pace of Covid’s vaccines has been slower than expected. The United States dispensed about 22.1 million doses and nearly 6.7 million people received their first injection by Friday – far short of the country’s original goal of immunizing at least 20 million people by the end of 2020 .
The implantation was fragmented, with those who have priority to receive the vaccine varying widely from state to state and from municipality to municipality. In some parts of Florida, demand far exceeded supply and generated long lines and frustration. Still, in some vaccine locations in the state of New York, eligible recipients refused vaccines or skipped their appointments and Covid’s vaccines went to waste.
Rite Aid has given more than 5,000 Covid vaccinations so far and has seen these challenges first hand, Donigan said.
“If you open a bottle and only get one person who wants a dose that day, you have to figure out what to do with the rest of the bottle,” she said. “It is extremely complicated to find out how to find the right people, the most vulnerable, at that moment, that day, without things being wasted.”
CVS Health and Walgreens, which also plan to administer injections in their stores, are involved in an earlier phase of the launch. The companies started administering vaccines to employees and residents in thousands of nursing homes and welfare facilities in mid-December. They said they plan to end the first round of injections at long-term care institutions by 25 January.
Covid’s vaccines can provide drugstores with a financial boost and allow them to show the changes they have made in their businesses. In addition to being paid to give vaccines, companies can also benefit from more pedestrian traffic in their stores – especially as consumers limit trips to stores and fill larger baskets during the pandemic.
Jefferies raised the rating of CVS shares to buy on Friday, saying his role in vaccination efforts could yield about $ 1 billion in incremental gross profits over the next 12 months.
Rite Aid has not yet predicted the impact of the vaccine, but COO Jim Peters said it will be considered in its forecast for the next fiscal year.