Arbor Drugs
Encyclopedia
Arbor Drugs was a chain of drug stores based in Troy, Michigan
.
It was founded by Eugene Applebaum and Bruno Manni in 1974, when they merged five stores and incorporated the chain under the Arbor name. In 1986, the chain went public, opening on NASDAQ
under the stock symbol ARBR. Through the years, the chain grew, by opening stores and acquiring rival chains, such as Sentry Drugs in 1986 and M&R in 1994. By 1992 the chain held a 27.6% market share in the Detroit area.
In 1979, the chain was one of the first to offer computerized prescriptions, and by 1989, the entire chain's records were linked together. By 1994, half the chain's sales were pharmacy-related.
A scandal broke out in July 1993 when it was revealed that the chain had overcharged the health insurance company Blue Cross and Blue Shield Association at least $17 million in prescriptions since 1988. The two sides later settled for $15 million, but only one year later, Arbor was once again involved in a controversy over overcharging Medicaid
claims. Eventually, all charges, both criminal and civil, were dropped.
By 1997, the drug store chain was the nation's eighth largest, having 207 locations throughout southeastern Michigan. Year 1997 revenues totalled $962.8 million.
CVS Corporation
announced on February 9, 1998 that it would be purchasing Arbor Drugs in a transaction estimated at $1.48 billion dollars, and creating the largest chain drug retailer in the process. Although most Arbor Drug locations were converted to CVS, several of these stores were later shuttered by the CVS Corporation.
Troy, Michigan
Troy is a city in Oakland County in the U.S. state of Michigan, and is a suburb of Detroit. The population was 80,980 at the 2010 census, making it the 11th-largest city in Michigan by population, and the largest city in Oakland County...
.
It was founded by Eugene Applebaum and Bruno Manni in 1974, when they merged five stores and incorporated the chain under the Arbor name. In 1986, the chain went public, opening on NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
under the stock symbol ARBR. Through the years, the chain grew, by opening stores and acquiring rival chains, such as Sentry Drugs in 1986 and M&R in 1994. By 1992 the chain held a 27.6% market share in the Detroit area.
In 1979, the chain was one of the first to offer computerized prescriptions, and by 1989, the entire chain's records were linked together. By 1994, half the chain's sales were pharmacy-related.
A scandal broke out in July 1993 when it was revealed that the chain had overcharged the health insurance company Blue Cross and Blue Shield Association at least $17 million in prescriptions since 1988. The two sides later settled for $15 million, but only one year later, Arbor was once again involved in a controversy over overcharging Medicaid
Medicaid
Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are U.S. citizens or legal permanent...
claims. Eventually, all charges, both criminal and civil, were dropped.
By 1997, the drug store chain was the nation's eighth largest, having 207 locations throughout southeastern Michigan. Year 1997 revenues totalled $962.8 million.
CVS Corporation
CVS Corporation
CVS Pharmacy, or simply CVS, is the second largest pharmacy chain in the United States , with over 7,000 stores in 41 states and Puerto Rico...
announced on February 9, 1998 that it would be purchasing Arbor Drugs in a transaction estimated at $1.48 billion dollars, and creating the largest chain drug retailer in the process. Although most Arbor Drug locations were converted to CVS, several of these stores were later shuttered by the CVS Corporation.