Elixir Pharmaceuticals, Inc.

WATERTOWN, Mass., Jan. 24, 2024 /PRNewswire/ -- ZWI Therapeutics, Inc. (ZWI), a biotechnology company focused on the development of protein therapeutics using proprietary new polymers, announces a Series A financing, the appointment of pharmaceutical industry veterans Drs. Larry Miller and Ron Cohen as Independent Directors to the company's Board of Directors, and Dr. Ed Mascioli as Chief Executive Officer and Board Director. "After closing our Series A $10 million financing from Co-win Ventures and Sherpa Healthcare Partners, engaging such high caliber executives in our company is a testimony to the confidence successful entrepreneurs see in the ZWI technology. Ed Mascioli's significant experience leading multiple biotech companies is important in our Company's growth" said Dr. Shaoyi Jiang, the Robert Langer '70 Family and Friends Professor at Cornell University, ZWI Board member, and co-founder. "As board members, Ron and Larry collectively bring decades of successful pharmaceutical industry experience to ZWI. We will utilize their extensive expertise as ZWI advances its pipeline of wholly-owned and differentiated candidates that aim to tackle immunogenicity of protein therapeutics - a major challenge in biologics development" said Dr. Mascioli. ZWI created new polymers, based on polycarboxybetaine, with several advantages over polyethylene glycol (PEG), including reduced immunogenicity and preserved pharmacokinetics, and can be used on many protein therapeutics, lipid nanoparticles, and hydrogels. These novel polymers are supported by dozens of issued and pending patents and over 300 publications. ZWI's lead program, ZWI-001 (uricase-polycarboxybetaine conjugate), has demonstrated preclinical proof of concept and is currently in development to treat hyperuricemia in severe gout. ZWI has gained meaningful guidance on CMC, non-clinical, and clinical plans from the FDA via an INTERACT meeting and is progressing toward filing an IND. About ZWI Therapeutics, Inc. ZWI, founded in 2020 by Drs. Bob Langer and Shaoyi Jiang, is a biotechnology company using a novel, patented polymer, polycarboxybetaine, to develop protein-polymer conjugates with potentially superior safety and efficacy over currently marketed therapeutics conjugated with polyethylene glycol (PEG). I n preclinical animal models, polycarboxybetaine conjugates have demonstrated consistently low or no immunogenicity and excellent pharmacokinetics compared to PEG conjugates. These attributes are expected to translate to enhanced clinical durability and safety compared to pegylated drugs. The ZWI platform polymer technology is also broadly useful in the development of nanoparticles and hydrogels, the latter especially for cellular therapies. ZWI will out-license its technology to pharmaceutical companies for specific development programs. ZWI is headquartered in Waltham, MA, USA. For more information about ZWI platforms and pipeline, please visit , follow up on LinkedIn or contact us at info@zwitx.com. About Gout Gout is diagnosed in 3.9% of the U.S. population- up to 13 million patients - and is the most common form of inflammatory arthritis. Gout is a serious, lifelong disease that needs ongoing treatment and requires changes in lifestyle habits to achieve control. If poorly treated, advanced gout can lead to the same level of work loss, physical disability, and diminished quality of life as is seen in advanced rheumatoid arthritis. Gouty arthritis is caused by an accumulation of uric acid crystals in joints that causes severe pain, disfigurement and mobility restrictions. Uric acid crystals can also deposit in other tissues throughout the body, such as the kidney, which can lead to kidney stones, the skin (deposits called tophi) and even in vasculature walls. Beyond pain and disability, deposition of uric acid crystals triggers the inflammatory cascade and contributes to well-known comorbidities, including thromboses, stroke, and major adverse cardiovascular events (MACE). Control of uric acid levels is the key to controlling gout and the inflammatory sequelae. Approximately 5-10% of patients, estimated at 250,000-400,000 people in the US, treated with oral urate lowering therapies do not respond adequately, and are termed refractory gout. Only one product is currently approved to treat refractory gout: KRYSTEXXA® (pegloticase, pegylated uricase). Refractory gout is an area of significant unmet medical need in a large market. Ron Cohen, M.D. is President, CEO, and founder of Acorda Therapeutics, Inc., a public biotechnology company developing therapies for disorders of the nervous system. Dr. Cohen previously was an officer of Advanced Tissue Sciences, Inc., a biotechnology company engaged in the growth of human organ tissues for transplantation uses. Dr. Cohen serves on the Boards of ZWI Therapeutics and of the Biotechnology Innovation Organization (BIO). He is past Chair of the Board of BIO's Emerging Companies Section, and of the New York Biotechnology Association (NYBA). He is a recipient of the NY CEO Lifetime Achievement Award and the Ernst & Young Entrepreneur of the Year Award for the New York Metropolitan Region. He was named Neuroinvestment's CEO of the Year and is an inductee of the National Spinal Cord Injury Association's "Spinal Cord Injury Hall of Fame". Dr. Cohen has been recognized by the NYBA as the "The Cures Start Here" Business Leader of the Year, by the Westchester County Association as its Leadership Award recipient, by Life Science Leader Magazine as True Life Science Leader of the Year, by PR Week/MM&M as one of the Health Influencer 50, by Scientific American as one of the 100 Most Influential People in Biotech, and by PharmaVOICE Magazine as one of the 100 Most Inspirational People in the Biopharmaceutical Industry. Dr. Cohen received his B.A. degree from Princeton University, and his M.D. from the Columbia College of Physicians & Surgeons. He completed a residency in Internal Medicine at the University of Virginia Medical Center, and is Board Certified in Internal Medicine. Larry Miller, M.D. currently serves as the Chief Executive Officer and Board Chair of Apnimed, a private biotechnology company which he co-founded in 2017 to develop therapeutics to treat obstructive sleep apnea. Since 1991, Dr. Miller has founded or co-founded 10 life sciences/healthcare companies including Macrolide Pharmaceuticals, HPR, Avicenna, PharMetrics, ImpactRx, Serenex, Optio Research, Tetraphase, and Activate, and has served as CEO or Board member or both in each case. Two of these companies completed public offerings and seven were acquired. Dr. Miller also co-founded the Mediphase funds, where he led investments in both private and public life sciences/healthcare companies, having served previously in a similar role at Hambrecht & Quist Capital Management. Dr. Miller received an A.B. from Harvard College, an M.D. from Harvard Medical School, and completed clinical training in internal medicine and pulmonary disease at the Massachusetts General Hospital. He is Board certified in Internal Medicine, Pulmonary Disease, and Clinical Pharmacology. Ed Mascioli, M.D. has been CEO of multiple private biotech companies, successfully selling two. Prior to his role as CEO, Dr Mascioli was a Venture Partner at SV Life Sciences. Previously, Dr. Mascioli was at Pfizer where he established a new unit in rare, orphan, and genetic diseases with assets aggregated from both external to and within Pfizer in hemophilia, muscular dystrophy, hereditary emphysema, cystic fibrosis, and mucopolysaccharidoses. Dr. Mascioli was also at MPM Capital, a leading healthcare venture capital firm with over $2.5B assets under management, where he led 10 financings totaling $299M, including new equity investments, bridge loans, and equity re-financings. Dr. Mascioli participated in the raising of two venture funds totaling $1.4B. As the investor representative, Dr. Mascioli has served as a Director on the Boards of Arriva Pharmaceuticals, Elixir Pharmaceuticals, Mindset BioPharmaceuticals, and Oxagen, Ltd., and as an Observer on the Boards of CGI Pharmaceuticals, Radius Health, and Peptimmune. Dr. Mascioli started his career on the faculty of Harvard Medical School as an Assistant Professor of Medicine and on the staff of the Beth Israel Deaconess Hospital in Boston. Dr. Mascioli holds an M.S. from MIT, an M.D. from the University of Massachusetts Medical School, and a B.A., cum laude, from Brandeis University. Co-win Ventures was founded in 2009 and is a top-tier China headquartered venture capital firm with a global vision to invest in high-tech and healthcare industries. With over USD 950 million under management to date, it has invested in more than 130 private companies with about half of them already exited through IPOs and M&A. Co-win has won multiple national and world-renowned venture capital awards. With professional teams based in China and the US, Co-Win becomes seeks to become a long-term partner for portfolio start-ups, assisting in building their companies, integrating industrial resources, and navigating with strategic insights. Sherpa Healthcare Partners was founded in 2018 by financiers who previously worked together in one of China's leading venture capital firms where they built and led its professional medical investment team, including setting up and leading investments in a dedicated healthcare fund. The founders have been teamed together in close co-operation, built on shared values, mutual trust, and complementary capabilities. Sherpa has now become an influential healthcare VC firm in the industry.

PHILADELPHIA--( BUSINESS WIRE )--Rite Aid Corporation (NYSE: RAD) today reported operating results for its third fiscal quarter ended November 26, 2022. “Our third quarter beat consensus on top and bottom line, and we’re pleased with our results at Elixir and our accelerated sales growth at retail. However, based on recent trends, we are lowering our full year guidance due to headwinds including pharmacy margin, seasonal markdowns and higher shrink,” said Heyward Donigan, president and chief executive officer. “In addition, we are kicking off a performance acceleration program, which allows us to fast-track initiatives that will improve sales, script volume and operating margins, and free up cash. We look forward to updating you on our progress at year end.” Consolidated Third Quarter Summary (dollars in thousands) Thirteen Week Period Ended Thirty-nine Week Period Ended November 26, 2022 November 27, 2021 November 26, 2022 November 27, 2021 Revenues $ 6,083,346 $ 6,228,880 $ 17,998,997 $ 18,502,865 Net loss (67,144) (36,058) (508,625) (149,416) Adjusted EBITDA 121,916 154,793 300,595 399,830 For the third quarter, the Company reported a net loss of $67.1 million, or $1.23 loss per share, Adjusted net loss of $7.9 million, or $0.14 loss per share, and Adjusted EBITDA of $121.9 million, or 2.0 percent of revenues. Revenues for the quarter were $6.08 billion compared to revenues of $6.23 billion in the prior year’s quarter, largely due to a reduction in revenue from COVID vaccines and testing, store closures and a planned loss of covered lives at Elixir. These items were partially offset by increases in both comparable front-end sales and non-COVID prescriptions. Third quarter net loss was $67.1 million, or $1.23 per share, compared to last year’s third quarter net loss of $36.1 million, or $0.67 per share. The increase in net loss is due primarily to a decrease in Adjusted EBITDA, an increase in interest expense and an increase in restructuring charges. These items were partially offset by a reduction in facility exit and impairment charges. Retail Pharmacy Segment (dollars in thousands) Thirteen Week Period Ended Thirty-nine Week Period Ended November 26, 2022 November 27, 2021 November 26, 2022 November 27, 2021 Revenues $ 4,412,232 $ 4,432,508 $ 12,989,379 $ 13,061,408 Adjusted EBITDA 81,683 125,931 186,849 290,214 Retail Pharmacy Segment revenues decreased 0.5 percent over the prior year quarter, driven by a reduction in COVID vaccine and testing revenue as well as store closures, partially offset by an increase in both acute and maintenance prescriptions. Same store sales for the third quarter increased 7.5 percent over the prior year period, consisting of a 9.5 percent increase in pharmacy sales and a 2.2 percent increase in front-end sales. Front-end same store sales, excluding tobacco products, increased 2.7 percent. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 4.4 percent over the prior year period. Total same store prescriptions, excluding COVID immunizations , increased 3.6 percent, with same store maintenance prescriptions increasing 2.1 percent and other same store acute prescriptions increasing 8.0 percent. Prescription sales accounted for 72.0 percent of total drugstore sales. Total store count at the end of the third quarter was 2,324. Retail Pharmacy Segment Adjusted EBITDA was $81.7 million, or 1.9 percent of revenues, for the third quarter compared to last year’s third quarter Adjusted EBITDA of $125.9 million, or 2.8 percent of revenues. The decline in Adjusted EBITDA was due to decreased gross profit, partially offset by a decrease in selling, general and administrative (SG&A) expenses of $81.2 million. Gross profit was negatively impacted by the decline in COVID vaccinations and testing and increased shrink expense, partially offset by the increase in prescriptions filled. SG&A expenses benefited from lower payroll, occupancy, and other operating costs due to store closures and cost control initiatives. Pharmacy Services Segment (dollars in thousands) Thirteen Week Period Ended Thirty-nine Week Period Ended November 26, 2022 November 27, 2021 November 26, 2022 November 27, 2021 Revenues $ 1,726,933 $ 1,858,830 $ 5,180,031 $ 5,629,325 Adjusted EBITDA 40,233 28,862 113,746 109,616 Pharmacy Services Segment revenues were $1.7 billion for the quarter, a decrease of 7.1 percent compared to the prior year quarter. The decrease in revenues was primarily the result of a planned decrease in Elixir Insurance membership and a previously announced client loss due to industry consolidation, partially offset by increased utilization of higher cost drugs. Pharmacy Services Segment Adjusted EBITDA was $40.2 million, or 2.3 percent of revenues, for the third quarter compared to last year’s third quarter Adjusted EBITDA of $28.9 million, or 1.6 percent of revenues. The current quarter benefitted from increased gross profit resulting from procurement economics, and reductions in SG&A expense, partially offset by the decline in revenues associated with lost clients, as mentioned above. Outlook for Fiscal 2023 Rite Aid Corporation is narrowing its outlook for Fiscal 2023 revenues and lowering its outlook for net loss and Adjusted EBITDA. Total revenues are expected to be between $23.7 billion and $24.0 billion in fiscal 2023. Retail Pharmacy Segment revenue is expected to be between $17.4 billion and $17.6 billion and Pharmacy Services Segment revenue is expected to be between $6.3 billion and $6.4 billion (net of any intercompany revenues to the Retail Pharmacy Segment). Net loss is expected to be between $584 million and $551 million. Adjusted EBITDA is expected to be between $410 million and $440 million versus prior guidance of between $450 million and $490 million, due to expectations of lower pharmacy margins, cautious consumer demand and the related impact on seasonal markdowns and continued shrink expense. Retail Pharmacy Segment Adjusted EBITDA is expected to be between $265 million and $285 million and Pharmacy Services Segment Adjusted EBITDA is expected to be between $145 million and $155 million. Adjusted net loss per share is expected to be between $2.18 and $1.78. Capital expenditures are expected to be approximately $225 million, with a focus on investments in digital capabilities, technology, prescription file purchases and distribution center automation. We expect to generate positive free cash flow in Fiscal 2023. Conference Call Broadcast Rite Aid will hold an analyst call at 8:30 a.m. Eastern Time today with remarks by Rite Aid's management team. The call will be broadcast via the Internet at https://investors.riteaid.com . The telephone replay will be available beginning at 12:00 p.m. Eastern Time on Wednesday, Dec. 21, 2022 and ending at 11:59 p.m. Eastern Time on Jan. 21, 2023. To access the replay of the call, telephone (800) 770-2030 or (647) 362-9199 and enter the seven-digit reservation number 9029129. The webcast replay of the call will also be available at https://investors.riteaid.com starting at 12 p.m. Eastern Time today. The playback will be available until the company’s next conference call. About Rite Aid Corporation Rite Aid Corporation is on the front lines of delivering healthcare services and retail products to Americans 365 days a year. Our pharmacists are uniquely positioned to engage with customers and improve their health outcomes. We provide an array of whole being health products and services for the entire family through over 2,300 retail pharmacy locations across 17 states. Through Elixir, we provide pharmacy benefits and services to millions of members nationwide. For more information, www.riteaid.com . Cautionary Statement Regarding Forward-Looking Statements Statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding Rite Aid's outlook and guidance for fiscal 2023, including our expectation to generate positive free cash flow in fiscal 2023; the continued impact of the global coronavirus (COVID-19) pandemic on Rite Aid’s business; and any assumptions underlying any of the foregoing. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," and "will" and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to: risks related to the prolonged impact of the COVID-19 global pandemic and the emerging new variants, including the government responses thereto; the impact of COVID-19 on our workforce, operations, stores, expenses, and supply chain, and the operations or behaviors of our customers, suppliers and business partners; our ability to successfully implement our store closure program and other strategies; the impact of our high level of indebtedness , the ability to refinance such indebtedness on acceptable terms (including the impact of rising interest rates, market volatility, and continuing actions by the United States Federal Reserve) and our ability to satisfy our obligations and the other covenants contained in our debt agreements; outcome of pending or new litigation and government investigations, including related to Opioids, “usual and customary” pricing, government payer programs or other matters; our ability to monetize (and on reasonably available terms) the CMS receivable created in our Part D business; general competitive, economic, industry, market, political (including healthcare reform) and regulatory conditions (including changes to laws or regulations relating to labor or wages), including continued impacts of inflation or other pricing environment factors on our costs, liquidity and our ability to pass on price increases to our customers, including as a result of inflationary and deflationary pressures, a decline in consumer financial position, whether due to inflation or other factors, as well as other factors specific to the markets in which we operate; the impact of private and public third-party payers continued reduction in prescription drug reimbursements, new or disruptive business models or practices, and efforts to encourage mail order; our ability to manage expenses and our investments in working capital; our ability to achieve the benefits of our efforts to reduce the costs of our generic and other drugs; our ability to achieve cost savings and other benefits of our restructuring efforts within our anticipated timeframe, if at all; the outcome of our continuing efforts to monitor and comply with applicable laws, orders, regulations, policies and procedures; and our ability to partner and have relationships with health plans and health systems. These and other risks, assumptions and uncertainties are more fully described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and in other documents that we file or furnish with the Securities and Exchange Commission (the “SEC”), which you are encouraged to read. To the extent that COVID-19 adversely affects our business and financial results, it may also have the effect of heightening many of such risk factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to rely on these forward-looking statements, which speak only as of the date they are made. The degree to which COVID-19 may adversely affect Rite Aid’s results and operations, including its ability to achieve its outlook for fiscal 2023 guidance, will depend on numerous evolving factors and future developments, which are highly uncertain, including, but not limited to, federal, state and local governmental policies and initiatives designed to reduce the transmission of COVID-19 and emerging new variants and how quickly and to what extent normal economic and operating conditions can resume. As a result, the impact on Rite Aid’s financial and operating results cannot be reasonably estimated with specificity at this time, but the impact could be material. Rite Aid expressly disclaims any current intention, and assumes no duty, to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise. All references to “Company” and “Rite Aid” as used throughout this release refer to Rite Aid Corporation and its affiliates. Reconciliation of Non-GAAP Financial Measures Rite Aid separately reports financial results on the basis of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share, Adjusted EBITDA, Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A, which are non-GAAP financial measures. See the attached tables for a reconciliation of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted EBITDA to net income (loss), and net income (loss) per diluted share, which are the most directly comparable GAAP financial measures. Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share exclude amortization expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, gains or losses on debt modifications and retirements, LIFO adjustments, goodwill and intangible asset impairment charges, restructuring-related costs, the gain or loss on Bartell acquisition, and the change in estimate related to manufacturer rebate receivables. Rite Aid believes Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share serve as appropriate measures to be used in evaluating the performance of its business and help its investors better compare its operating performance over multiple periods. Adjusted EBITDA is defined as net income (loss) excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility exit and impairment, goodwill and intangible asset impairment charges, inventory write-downs related to store closings, gains or losses on debt modifications and retirements, and other items (including stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, severance, restructuring-related costs, costs related to facility closures, gain or loss on sale of assets, the gain or loss on Bartell acquisition, and the change in estimate related to manufacturer rebate receivables). The add back of LIFO (credit) charge when calculating Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share removes the entire impact of LIFO (credits) charges, and effectively reflects Rite Aid's results as if the company was on a FIFO inventory basis. Rite Aid believes Adjusted EBITDA serves as an appropriate measure in evaluating the performance of its business and helps its investors better compare its operating performance with its competitors. Adjusted EBITDA Gross Profit includes LIFO adjustments, depreciation and amortization (COGS portion only) and other items. See the attached tables for a reconciliation of Adjusted EBITDA Gross Profit to Revenue, which is the most directly comparable GAAP financial measure. Adjusted EBITDA SG&A excludes depreciation and amortization (SG&A portion only), stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, and other items. See the attached tables for a reconciliation of Adjusted EBITDA SG&A to Revenue, which is the most directly comparable GAAP financial measure. The Company believes Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A serve as appropriate measures in evaluating the performance of its business and helps its investors better compare its operating performance with its competitors. RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (unaudited) November 26, 2022 February 26, 2022 ASSETS Current assets: Cash and cash equivalents $ 103,054 $ 39,721 Accounts receivable, net 1,473,997 1,343,496 Inventories, net of LIFO reserve of $512,540 and $487,173 1,981,335 1,959,389 Prepaid expenses and other current assets 119,836 106,749 Total current assets 3,678,222 3,449,355 Property, plant and equipment, net 939,648 989,167 Operating lease right-of-use assets 2,622,969 2,813,535 Goodwill 626,936 879,136 Other intangibles, net 259,954 291,196 Deferred tax assets 13,938 20,071 Other assets 68,107 86,543 Total assets $ 8,209,774 $ 8,529,003 LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY Current liabilities: Current maturities of long-term debt and lease financing obligations $ 6,107 $ 5,544 Accounts payable 1,454,988 1,571,261 Accrued salaries, wages and other current liabilities 799,555 780,632 Current portion of operating lease liabilities 563,490 575,651 Total current liabilities 2,824,140 2,933,088 Long-term debt, less current maturities 3,189,013 2,732,986 Long-term operating lease liabilities 2,427,836 2,597,090 Lease financing obligations, less current maturities 12,970 14,830 Other noncurrent liabilities 159,549 151,976 Total liabilities 8,613,508 8,429,970 Commitments and contingencies - - Stockholders' (deficit) equity: Common stock 56,526 55,752 Additional paid-in capital 5,915,383 5,910,299 Accumulated deficit (6,360,206 ) (5,851,581 ) Accumulated other comprehensive loss (15,437 ) (15,437 ) Total stockholders' (deficit) equity (403,734 ) 99,033 Total liabilities and stockholders' (deficit) equity $ 8,209,774 $ 8,529,003 RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (unaudited) Thirteen weeks ended November 26, 2022 Thirteen weeks ended November 27, 2021 Revenues $ 6,083,346 $ 6,228,880 Costs and expenses: Cost of revenues 4,879,594 4,894,497 Selling, general and administrative expenses 1,194,546 1,276,920 Facility exit and impairment charges 22,539 47,455 Interest expense 57,416 47,794 Gain on sale of assets, net (3,095 ) (5,899 ) Loss on Bartell acquisition - 5,346 6,151,000 6,266,113 Loss before income taxes (67,654 ) (37,233 ) Income tax benefit (510 ) (1,175 ) Net loss $ (67,144 ) $ (36,058 ) Basic and diluted loss per share: Numerator for loss per share: Net loss attributable to common stockholders - basic and diluted $ (67,144 ) $ (36,058 ) Denominator: Basic and diluted weighted average shares 54,792 54,168 Basic and diluted loss per share $ (1.23 ) $ (0.67 ) RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (unaudited) Thirty-nine weeks ended November 26, 2022 Thirty-nine weeks ended November 27, 2021 Revenues $ 17,998,997 $ 18,502,865 Costs and expenses: Cost of revenues 14,444,021 14,637,683 Selling, general and administrative expenses 3,606,028 3,790,035 Facility exit and impairment charges 134,955 67,639 Goodwill and intangible asset impairment charges 252,200 - Interest expense 158,068 145,507 (Gain) loss on debt modifications and retirements, net (41,312 ) 3,235 Gain on sale of assets, net (61,292 ) (79 ) Loss on Bartell acquisition - 5,346 18,492,668 18,649,366 Loss before income taxes (493,671 ) (146,501 ) Income tax expense 14,954 2,915 Net loss $ (508,625 ) $ (149,416 ) Basic and diluted loss per share: Numerator for loss per share: Net loss attributable to common stockholders - basic and diluted $ (508,625 ) $ (149,416 ) Denominator: Basic and diluted weighted average shares 54,567 54,004 Basic and diluted loss per share $ (9.32 ) $ (2.77 ) RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (unaudited) Thirteen weeks ended November 26, 2022 Thirteen weeks ended November 27, 2021 OPERATING ACTIVITIES: Net loss $ (67,144 ) $ (36,058 ) Adjustments to reconcile to net cash provided by (used in) operating activities: Depreciation and amortization 69,496 72,973 Facility exit and impairment charges 22,539 47,455 LIFO charge 15,246 8,886 Change in allowances for uncollectible accounts receivable 9,082 - Gain on sale of assets, net (3,095 ) (5,899 ) Loss on Bartell acquisition - 5,346 Stock-based compensation expense 566 217 Changes in deferred taxes - (1,602 ) Changes in operating assets and liabilities: Accounts receivable 62,041 (185,224 ) Inventories 29,634 (68,054 ) Accounts payable (55,762 ) 38,112 Operating lease right-of-use assets and operating lease liabilities (22,838 ) (7,208 ) Other assets 1,935 9,761 Other liabilities 70,909 118,257 Net cash provided by (used in) operating activities 132,609 (3,038 ) INVESTING ACTIVITIES: Payments for property, plant and equipment (50,320 ) (39,645 ) Intangible assets acquired (9,581 ) (9,810 ) Proceeds from dispositions of assets and investments 10,027 3,145 Proceeds from sale-leaseback transactions 9,908 25,605 Net cash used in investing activities (39,966 ) (20,705 ) FINANCING ACTIVITIES: Net (payments to) proceeds from revolver (36,000 ) 50,000 Principal payments on long-term debt (1,057 ) (1,032 ) Change in zero balance cash accounts 747 (14,243 ) Payments for taxes related to net share settlement of equity awards (87 ) (131 ) Deferred financing costs paid - (2,126 ) Net cash (used in) provided by financing activities (36,397 ) 32,468 Increase in cash and cash equivalents 56,246 8,725 Cash and cash equivalents, beginning of period 46,808 146,564 Cash and cash equivalents, end of period $ 103,054 $ 155,289 RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (unaudited) Thirty-nine weeks ended November 26, 2022 Thirty-nine weeks ended November 27, 2021 OPERATING ACTIVITIES: Net loss $ (508,625 ) $ (149,416 ) Adjustments to reconcile to net cash (used in) provided by operating activities: Depreciation and amortization 208,133 222,691 Facility exit and impairment charges 134,955 67,639 Goodwill and intangible asset impairment charges 252,200 - LIFO charge 25,367 900 Change in allowances for uncollectible accounts receivable 7,411 - Gain on sale of assets, net (61,292 ) (79 ) Loss on Bartell acquisition - 5,346 Stock-based compensation expense 8,635 8,820 (Gain) loss on debt modifications and retirements, net (41,312 ) 3,235 Changes in deferred taxes 6,133 (1,602 ) Changes in operating assets and liabilities: Accounts receivable (149,632 ) (398,079 ) Inventories (47,771 ) (87,150 ) Accounts payable (99,105 ) 129,436 Operating lease right-of-use assets and operating lease liabilities (54,551 ) (19,517 ) Other assets (8,935 ) 34,946 Other liabilities 9,537 219,390 Net cash (used in) provided by operating activities (318,852 ) 36,560 INVESTING ACTIVITIES: Payments for property, plant and equipment (172,563 ) (145,001 ) Intangible assets acquired (24,937 ) (24,289 ) Proceeds from insured loss - 10,436 Proceeds from dispositions of assets and investments 51,030 7,821 Proceeds from sale-leaseback transactions 55,894 39,790 Net cash used in investing activities (90,576 ) (111,243 ) FINANCING ACTIVITIES: Proceeds from issuance of long-term debt - 350,000 Net proceeds from revolver 641,000 300,000 Principal payments on long-term debt (153,068 ) (544,020 ) Change in zero balance cash accounts (12,184 ) (15,087 ) Financing fees paid for early debt redemption (881 ) (833 ) Payments for taxes related to net share settlement of equity awards (2,106 ) (2,352 ) Deferred financing costs paid - (18,638 ) Net cash provided by financing activities 472,761 69,070 Increase (decrease) in cash and cash equivalents 63,333 (5,613 ) Cash and cash equivalents, beginning of period 39,721 160,902 Cash and cash equivalents, end of period $ 103,054 $ 155,289 RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL SEGMENT OPERATING INFORMATION (Dollars in thousands) (unaudited) Thirteen weeks ended November 26, 2022 Thirteen weeks ended November 27, 2021 Retail Pharmacy Segment Revenues (a) $ 4,412,232 $ 4,432,508 Cost of revenues (a) 3,312,953 3,199,271 Gross profit 1,099,279 1,233,237 LIFO charge 15,246 8,886 FIFO gross profit 1,114,525 1,242,123 Adjusted EBITDA gross profit 1,119,171 1,244,637 Gross profit as a percentage of revenues 24.91 % 27.82 % LIFO charge as a percentage of revenues 0.35 % 0.20 % FIFO gross profit as a percentage of revenues 25.26 % 28.02 % Adjusted EBITDA gross profit as a percentage of revenues 25.37 % 28.08 % Selling, general and administrative expenses 1,118,792 1,185,974 Adjusted EBITDA selling, general and administrative expenses 1,037,488 1,118,706 Selling, general and administrative expenses as a percentage of revenues 25.36 % 26.76 % Adjusted EBITDA selling, general and administrative expenses as a percentage of revenues 23.51 % 25.24 % Cash interest expense 54,578 44,853 Non-cash interest expense 2,838 2,941 Total interest expense 57,416 47,794 Adjusted EBITDA 81,683 125,931 Adjusted EBITDA as a percentage of revenues 1.85 % 2.84 % Pharmacy Services Segment Revenues (a) $ 1,726,933 $ 1,858,830 Cost of revenues (a) 1,622,460 1,757,684 Gross profit 104,473 101,146 Gross profit as a percentage of revenues 6.05 % 5.44 % Adjusted EBITDA 40,233 28,862 Adjusted EBITDA as a percentage of revenues 2.33 % 1.55 % (a) - Revenues and cost of revenues include $55,819 and $62,458 of inter-segment activity for the thirteen weeks ended November 26, 2022 and November 27, 2021, respectively, that is eliminated in consolidation. RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL SEGMENT OPERATING INFORMATION (Dollars in thousands) (unaudited) Thirty-nine weeks ended November 26, 2022 Thirty-nine weeks ended November 27, 2021 Retail Pharmacy Segment Revenues (a) $ 12,989,379 $ 13,061,408 Cost of revenues (a) 9,749,707 9,517,875 Gross profit 3,239,672 3,543,533 LIFO charge 25,367 900 FIFO gross profit 3,265,039 3,544,433 Adjusted EBITDA gross profit 3,281,878 3,551,888 Gross profit as a percentage of revenues 24.94 % 27.13 % LIFO charge as a percentage of revenues 0.20 % 0.01 % FIFO gross profit as a percentage of revenues 25.14 % 27.14 % Adjusted EBITDA gross profit as a percentage of revenues 25.27 % 27.19 % Selling, general and administrative expenses 3,336,781 3,505,365 Adjusted EBITDA selling, general and administrative expenses 3,095,029 3,261,674 Selling, general and administrative expenses as a percentage of revenues 25.69 % 26.84 % Adjusted EBITDA selling, general and administrative expenses as a percentage of revenues 23.83 % 24.97 % Cash interest expense 149,441 136,476 Non-cash interest expense 8,627 9,031 Total interest expense 158,068 145,507 Adjusted EBITDA 186,849 290,214 Adjusted EBITDA as a percentage of revenues 1.44 % 2.22 % Pharmacy Services Segment Revenues (a) $ 5,180,031 $ 5,629,325 Cost of revenues (a) 4,864,727 5,307,676 Gross profit 315,304 321,649 Gross profit as a percentage of revenues 6.09 % 5.71 % Adjusted EBITDA 113,746 109,616 Adjusted EBITDA as a percentage of revenues 2.20 % 1.95 % (a) - Revenues and cost of revenues include $170,413 and $187,868 of inter-segment activity for the thirty-nine weeks ended November 26, 2022 and November 27, 2021, respectively, that is eliminated in consolidation. RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (In thousands) (unaudited) Thirteen weeks ended November 26, 2022 Thirteen weeks ended November 27, 2021 Reconciliation of net loss to adjusted EBITDA: Net loss $ (67,144 ) $ (36,058 ) Adjustments: Interest expense 57,416 47,794 Income tax benefit (510 ) (1,175 ) Depreciation and amortization 69,496 72,973 LIFO charge 15,246 8,886 Facility exit and impairment charges 22,539 47,455 Merger and Acquisition-related costs - 3,642 Stock-based compensation expense 566 217 Restructuring-related costs 26,500 9,657 Inventory write-downs related to store closings 3,085 86 Litigation and other contractual settlements (2,541 ) 2,000 Gain on sale of assets, net (3,095 ) (5,899 ) Loss on Bartell acquisition - 5,346 Other 358 (131 ) Adjusted EBITDA $ 121,916 $ 154,793 Percent of revenues 2.00 % 2.49 % RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (In thousands) (unaudited) Thirty-nine weeks ended November 26, 2022 Thirty-nine weeks ended November 27, 2021 Reconciliation of net loss to adjusted EBITDA: Net loss $ (508,625 ) $ (149,416 ) Adjustments: Interest expense 158,068 145,507 Income tax expense 14,954 2,915 Depreciation and amortization 208,133 222,691 LIFO charge 25,367 900 Facility exit and impairment charges 134,955 67,639 Goodwill and intangible asset impairment charges 252,200 - (Gain) loss on debt modifications and retirements, net (41,312 ) 3,235 Merger and Acquisition-related costs - 12,119 Stock-based compensation expense 8,635 8,820 Restructuring-related costs 61,951 25,173 Inventory write-downs related to store closings 12,134 1,356 Litigation and other contractual settlements 35,823 50,212 Gain on sale of assets, net (61,292 ) (79 ) Loss on Bartell acquisition - 5,346 Other (396 ) 3,412 Adjusted EBITDA $ 300,595 $ 399,830 Percent of revenues 1.67 % 2.16 % RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ADJUSTED NET (LOSS) INCOME (Dollars in thousands, except per share amounts) (unaudited) Thirteen weeks ended November 26, 2022 Thirteen weeks ended November 27, 2021 Net loss $ (67,144 ) $ (36,058 ) Add back - Income tax benefit (510 ) (1,175 ) Loss before income taxes (67,654 ) (37,233 ) Adjustments: Amortization expense 17,622 18,780 LIFO charge 15,246 8,886 Merger and Acquisition-related costs - 3,642 Restructuring-related costs 26,500 9,657 Litigation and other contractual settlements (2,541 ) 2,000 Loss on Bartell acquisition - 5,346 Adjusted (loss) income before income taxes (10,827 ) 11,078 Adjusted income tax (benefit) expense (a) (2,897 ) 2,914 Adjusted net (loss) income $ (7,930 ) $ 8,164 Adjusted net (loss) income per diluted share: Numerator for adjusted net (loss) income per diluted share: Adjusted net (loss) income $ (7,930 ) $ 8,164 Denominator: Basic weighted average shares 54,792 54,168 Outstanding options and restricted shares, net - 541 Diluted weighted average shares 54,792 54,709 Net loss per diluted share $ (1.23 ) $ (0.67 ) Adjusted net (loss) income per diluted share $ (0.14 ) $ 0.15 (a) The fiscal year 2023 and 2022 annual effective tax rates, calculated using a federal rate plus a net state rate that excluded the impact of state NOL's, state credits and valuation allowance, was used for the thirteen weeks ended November 26, 2022 and November 27, 2021, respectively. RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ADJUSTED NET (LOSS) INCOME (Dollars in thousands, except per share amounts) (unaudited) Thirty-nine weeks ended November 26, 2022 Thirty-nine weeks ended November 27, 2021 Net loss $ (508,625 ) $ (149,416 ) Add back - Income tax expense 14,954 2,915 Loss before income taxes (493,671 ) (146,501 ) Adjustments: Amortization expense 56,668 59,193 LIFO charge 25,367 900 Goodwill and intangible asset impairment charges 252,200 - (Gain) loss on debt modifications and retirements, net (41,312 ) 3,235 Merger and Acquisition-related costs - 12,119 Restructuring-related costs 61,951 25,173 Litigation and other contractual settlements 35,823 50,212 Loss on Bartell acquisition - 5,346 Adjusted (loss) income before income taxes (102,974 ) 9,677 Adjusted income tax (benefit) expense (a) (27,556 ) 2,545 Adjusted net (loss) income $ (75,418 ) $ 7,132 Adjusted net (loss) income per diluted share: Numerator for adjusted net (loss) income per diluted share: Adjusted net (loss) income $ (75,418 ) $ 7,132 Denominator: Basic weighted average shares 54,567 54,004 Outstanding options and restricted shares, net - 998 Diluted weighted average shares 54,567 55,002 Net loss per diluted share $ (9.32 ) $ (2.77 ) Adjusted net (loss) income per diluted share $ (1.38 ) $ 0.13 (a) The fiscal year 2023 and 2022 annual effective tax rates, calculated using a federal rate plus a net state rate that excluded the impact of state NOL's, state credits and valuation allowance, was used for the thirty-nine weeks ended November 26, 2022 and November 27, 2021, respectively. RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF ADJUSTED EBITDA GROSS PROFIT AND RECONCILIATION OF ADJUSTED EBITDA SELLING, GENERAL AND ADMINISTRATIVE EXPENSES- RETAIL PHARMACY SEGMENT (In thousands) (unaudited) Thirteen weeks ended November 26, 2022 Thirteen weeks ended November 27, 2021 Reconciliation of adjusted EBITDA gross profit: Revenues $ 4,412,232 $ 4,432,508 Gross Profit 1,099,279 1,233,237 Addback: LIFO charge 15,246 8,886 Depreciation and amortization (cost of goods sold portion only) 2,158 2,489 Other 2,488 25 Adjusted EBITDA gross profit $ 1,119,171 $ 1,244,637 Percent of revenues 25.37 % 28.08 % Reconciliation of adjusted EBITDA selling, general and administrative expenses: Revenues $ 4,412,232 $ 4,432,508 Selling, general and administrative expenses 1,118,792 1,185,974 Less: Depreciation and amortization (SG&A portion only) 56,542 58,087 Stock-based compensation expense 456 (174 ) Merger and Acquisition-related costs - 3,642 Restructuring-related costs 19,876 3,746 Litigation and other contractual settlements 3,475 2,000 Other 955 (33 ) Adjusted EBITDA selling, general and administrative expenses $ 1,037,488 $ 1,118,706 Percent of revenues 23.51 % 25.24 % Adjusted EBITDA $ 81,683 $ 125,931 RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF ADJUSTED EBITDA GROSS PROFIT AND RECONCILIATION OF ADJUSTED EBITDA SELLING, GENERAL AND ADMINISTRATIVE EXPENSES- RETAIL PHARMACY SEGMENT (In thousands) (unaudited) Thirty-nine weeks ended November 26, 2022 Thirty-nine weeks ended November 27, 2021 Reconciliation of adjusted EBITDA gross profit: Revenues $ 12,989,379 $ 13,061,408 Gross Profit 3,239,672 3,543,533 Addback: LIFO charge 25,367 900 Depreciation and amortization (cost of goods sold portion only) 7,126 6,536 Other 9,713 919 Adjusted EBITDA gross profit $ 3,281,878 $ 3,551,888 Percent of revenues 25.27 % 27.19 % Reconciliation of adjusted EBITDA selling, general and administrative expenses: Revenues $ 12,989,379 $ 13,061,408 Selling, general and administrative expenses 3,336,781 3,505,365 Less: Depreciation and amortization (SG&A portion only) 164,361 176,936 Stock-based compensation expense 8,054 8,292 Merger and Acquisition-related costs - 12,119 Restructuring-related costs 45,689 7,951 Litigation and other contractual settlements 21,597 34,448 Other 2,051 3,945 Adjusted EBITDA selling, general and administrative expenses $ 3,095,029 $ 3,261,674 Percent of revenues 23.83 % 24.97 % Adjusted EBITDA $ 186,849 $ 290,214 RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED EBITDA GUIDANCE YEAR ENDING MARCH 4, 2023 (In thousands) (unaudited) Guidance Range Low High Total Revenues $ 23,700,000 $ 24,000,000 Pharmacy Services Segment Revenues $ 6,300,000 $ 6,400,000 Gross Capital Expenditures $ 225,000 $ 225,000 Reconciliation of net loss to adjusted EBITDA: Net loss $ (584,000 ) $ (551,000 ) Adjustments: Interest expense 220,000 220,000 Income tax benefit (7,000 ) (10,000 ) Depreciation and amortization 280,000 280,000 LIFO charge 35,000 35,000 Facility exit and impairment charges 182,000 182,000 Goodwill and intangible asset impairment charges 252,000 252,000 Gain on debt modifications and retirements, net (41,000 ) (41,000 ) Restructuring-related costs 72,000 72,000 Litigation and other contractual settlements 36,000 36,000 Gain on sale of assets, net (60,000 ) (60,000 ) Other 25,000 25,000 Adjusted EBITDA $ 410,000 $ 440,000 RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED NET LOSS GUIDANCE YEAR ENDING MARCH 4, 2023 (In thousands) (unaudited) Guidance Range Low High Net loss $ (584,000 ) $ (551,000 ) Add back - income tax benefit (7,000 ) (10,000 ) Loss before income taxes (591,000 ) (561,000 ) Adjustments: Amortization expense 75,000 75,000 LIFO charge 35,000 35,000 Goodwill and intangible asset impairment charges 252,000 252,000 Gain on debt modifications and retirements, net (41,000 ) (41,000 ) Restructuring-related costs 72,000 72,000 Litigation and other contractual settlements 36,000 36,000 Adjusted loss before adjusted income taxes (162,000 ) (132,000 ) Adjusted income tax benefit (43,000 ) (35,000 ) Adjusted net loss $ (119,000 ) $ (97,000 ) Diluted adjusted net loss per share $ (2.18 ) $ (1.78 )

MILPITAS, Calif.--(BUSINESS WIRE)-- Elixir Medical a developer of innovative, drug-eluting cardiovascular devices, today announced it has appointed Alexey (Alex) Nepogodiev as Executive Vice President, Global Marketing. Alex possesses more than 20 years of leadership experience in successfully developing new markets and therapies in interventional cardiology, structural heart, and endovascular businesses worldwide. Most recently, Alex served as Divisional Vice President of Global Marketing for Abbott Vascular, where he was responsible for the long-term strategy and marketing of the division's coronary, endovascular, imaging and physiology portfolios. Prior to that, Alex led the global marketing function for Abbott Structural Heart and its portfolio of transcatheter valve and congenital heart disease technologies, with a major focus on market development. He has also held roles of increasing responsibility at Medtronic, where he contributed to the development and launch of multiple generations of drug-eluting stents and other vascular technologies. Alex holds a bachelor’s degree in marketing from Western Michigan University and an MBA from Thunderbird School of Global Management at Arizona State University. “Alex’s global leadership in developing and establishing diverse therapies across important market segments will be critical as Elixir expands its broad portfolio of innovative products in interventional cardiology and peripheral vascular markets,” said Elixir Medical President and Chief Operating Officer Vinayak Bhat, PhD. “Elixir’s disruptive innovation will enable extraordinary clinical therapies to be available to clinicians for their patients globally,” said Mr. Nepogodiev. “I am honored to join such a dynamic organization, and excited about becoming a part of the excellent leadership team.” About Elixir Medical Elixir Medical Corporation, a privately-funded company based in Milpitas, California, develops next-generation platforms to treat coronary and peripheral artery disease that are designed to restore the adaptive remodeling and pulsatile motion capabilities of the blood vessel. The company’s mission is to transform the care of patients with heart and vascular disease through innovation.