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| Industry | Drug store |
|---|---|
| Founders | Eugene Applebaum & Bruno Manni |
| Fate | Purchased byCVS Corporation |
| Headquarters |
Arbor Drugs was a chain of drug stores based inTroy, Michigan.
It was founded by Eugene Applebaum and Bruno Manni, when five stores owned by Applebaum andSentry Drugs, founded by Bruno Manni, were renamed after Applebaum’s original Ann Arbor-based store. In 1986, the chain went public, opening onNASDAQ under the stock symbol ARBR. Through the years, the chain grew by opening stores and acquiring rival chains, such as,M&R in 1994. By 1998, the chain held a 45% market share in theDetroit area.[1][2]
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 companyBlue Cross and Blue Shield Association at least $17 million in prescriptions since 1988.[3] The two sides later settled for $15 million, but only one year later, Arbor was once again involved in a controversy over overchargingMedicaid claims.[4] 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. In 1997, revenues totaled $962.8 million (~$1.7 billion in 2023).
CVS Corporation announced on February 9, 1998, that it would be purchasing Arbor Drugs in a transaction estimated at $1.48 billion (~$2.58 billion in 2023), and creating the largest chain drug retailer in the process.[5] Although most Arbor Drug locations were converted to CVS, several of these stores were later shuttered by the CVS Corporation.
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