Independent pharmacy Hopkinton Drug is suing CVS Caremark after the pharmacy`s manager terminated a contract that could destroy the Main Street business. Carolyn Castel, vice president of corporate communications at CVS Caremark, addressed the lawsuit in an electronic statement, confirming that the agreement with Hopkinton Drug was terminated on July 3 after a judge dismissed a request for an injunction to prevent termination. Castel said that as a pharmacy benefits manager, CVS Caremark is required to review the pharmacies it works with. “Honestly, if they cancelled my contract tomorrow, it would bankrupt me,” Bouvier said. “You can`t be in the pharmacy in the store and not have a contract with them.” Hopkinton Drug is not alone. Brian Bouvier, chief operating officer at Bouvier Pharmacy & Home Medical Solutions in Marlborough, said CVS Caremark also frequently inquires about buying his business. But with no intention of selling, Bouvier continues to work with CVS Caremark under a supplier deal similar to the one Hopkinton Drug hopes to receive. Without them, Bouvier said his business would be at a standstill. The lawsuit alleges that CVS reviewed Hopkinton Drug in April 2013 and raised concerns about the sale of prescriptions in states where it is not authorized. Hopkinton Drug said it immediately stopped this practice when it applied for the required licenses and now employs licensed couriers to transport prescriptions that the pharmacy says were “fully authorized under the relevant laws.” After correcting these measures, Hopkinton Drug said CVS did not raise any additional issues before notifying Hopkinton Drug in June that the sale agreement had been terminated. In a statement released at the time of the merger, CVS said the agreement “unites the nation`s largest pharmacy chain with a leading pharmacy services company and creates the opportunity to offer unique products and services that help manage costs for employers and improve access and choice for consumers.” Hopkinton Drug asked a judge to issue an injunction that would prevent CVS from terminating the agreement, saying Hopkinton Drug would be “immediately and irreparably harmed” unless the court took action.

According to the lawsuit, about 28 percent of Hopkinton Drug`s revenue comes from customers insured by health plans run by cvS Caremark. If the deal is terminated, the pharmacy will have to lay off between 40 and 50 percent of its 48 employees, the lawsuit says. CVS Corp. and Caremark RX, Inc. merged in 2007, creating an “integrated pharmacy service provider,” with CVS Caremark acting as the manager of prescription benefits for health insurance subscribers in addition to CVS` retail page. The lawsuit alleges that CVS` real estate division has repeatedly asked whether Katz, which also owns Hopkinton Drug, would be interested in selling the business and its real estate assets, suggesting that the clientele served by the independent pharmacy is on CVS Caremark`s radar. But Castel said the suggestion that CVS Caremark terminated its agreement with Hopkinton Drug for a reason other than the issues identified in the 2013 review was unfounded. Founded in 1954, Hopkinton Drug is Hopkinton`s only pharmacy and specializes in compound drugs for patients unable to take standard medications due to medical conditions or sensitivities, according to the lawsuit. The pharmacy is particularly focused on treating Lyme disease and mold allergies, and Katz is an active member of several industry associations. “Decisions about network delivery are not taken lightly.

In fact, (CVS Caremark) leaves less than one percent of its pharmacy network in a year. We pride ourselves on maintaining the highest standards of safety and quality for pharmacies in the network, and a necessary part of this is ensuring that pharmacies comply with the terms of their supplier agreements,” Castel wrote. On June 30, Hopkinton Drug`s lawyers filed a lawsuit in U.S. District Court in Boston seeking injunctive relief and damages after Rhode Island-based CVS Caremark informed Hopkinton Drug that it was terminating a nearly 20-year supplier agreement that allows patients covered by CVS Caremark to fill prescriptions with Hopkinton Drug. Hopkinton Drug`s lawsuit raises questions about whether CVS Caremark could have an unfair advantage over smaller pharmaceutical companies. .