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SPRINGFIELD, Ill. — H.D. Smith has entered a three-year agreement to become the exclusive wholesaler for PharmacyGPO, a buying group that serves independent pharmacies nationwide.
The pharmaceutical distributor said Monday that under the pact, it will supply a full line of pharmaceuticals, health and wellness items, durable medical equipment and other products to PharmacyGPO, whose member base has seen 300% growth since the group was launched last June.
"H.D. Smith is privileged to have been selected as PharmacyGPO’s sole provider of pharmaceutical wholesale distribution and services," Dale Smith, chairman and chief executive officer of H.D. Smith, said in a statement. "As H.D. Smith has diversified its customer base during the last decade, independent community pharmacies have remained our core focus. We look forward to working alongside PharmacyGPO to help its members impact positively patient care while operating profitable businesses. Additionally, we see long-term growth opportunities working together, with complementary growth tracks for both companies in long-term care and specialty support."
Pittsburgh-based PharmacyGPO said it plans to expand its business model to community retail pharmacies across the country and augment its presence in privately owned long-term care facilities. Next year, the group also aims to launch a specialty pharmacy buying group division.
"PharmacyGPO serves the independent pharmacy’s need for a buying group that provides value beyond negotiating discounts and rebates from its wholesaler. Instead, our gross profit optimization model focuses on business growth, new prescription development and effective use of technology to ultimately increase profitability for independent pharmacies," explained Todd Eury, founder and president of PharmacyGPO.
"In choosing an exclusive wholesale partner, PharmacyGPO sought a company with an unquestionable commitment to independent community pharmacy, and H.D. Smith quickly became the obvious choice due to its leadership in serving this key segment of the health care industry," Eury stated. "Our unique gross profit optimization model, combined with H.D. Smith’s customer-focused service and competitive pricing, will help our members solidify market share impacted by mail order and PBM competition."
