Certainly, Kroger (KR) has the resources to correct the problems, but the disclosure is a stain on its efforts to expand into the specialtypharmacy business.
Last quarter, its PBM revenues grew 32% as it processed 17% more mail choice and 26% more pharmacy network claims compared to the prior year period, benefiting from its leading market share in Medicare Part D prescription business as well as high growth in specialtypharmacy and strong adoption of its Maintenance Choice plans.
Kroger, which owns Axium Healthcare Pharmacy, a specialty operator that the food and pharmacy retailer purchased last year in a bid to broaden its already large and fast-growing pharmacy business (look here and here).