Dear PFOA Members,

I hope all of you had a happy and safe New Year. 2011 served as a good year for the organization and its members. We ended the year able to return end of year rebates to over 276 of our member stores totaling over $375,000.00. This is more than twice the amount sent back at end or year 2010 to more than twice the amount of members. In addition we have returned over $4,000,000 in performance rebates to our members this year. This is only a part of the additional benefits attained with our programs. Much more has been attained in invoice savings via our affiliate agreements, renogotiated prime vendor program with AmerisourceBergen and additional vendors such as ANDA. We ran west coast and east members meetings early in the year. We had a successful annual meeting with several socials. We established a business development committee which began our foray into educational webcasts with the topic of Medication Synchronization. We judiciously added staff which helped yield the excellent results experienced in 2011. I know we could not have done this without their efforts.

A majority of our members have signed the new membership agreement. If you have not signed one, please take a moment to do so. It is important to sign and return the membership agreement due to the new programs we have added.

Our PFOA MS and MC efforts while suffering a setback early in 2011 has managed to work with MSI yielding an offering that a number of our option three member franchisees have determined is economically acceptable for conversion to option one. A number of our option one members have also been offered an opportunity for reduction in their deal getting money back. Many of our members using Cardinal have benefited from our affiliation agreements with AAP and PIPCo allowing them significant purchase savings vs. the MSI agreement they used previously with Cardinal. A number of option three members have proceeded with legal action seeking solution for issues not resolved during the year. Filings were done in December. This will be carried forward in 2012.

2012 offers opportunity to show further progress. While there are always challenges brought on by changes in the market, we should work towards making the best of them and leading our members towards decisions that will help them both in the short and the long term. A business plan has been created for 2012. It contains a detailed look at programs and direction. We look for board approval before month’s end.

Thanks to Larry McIntosh on his efforts to get the year end rebates out as well as to Nancy Coibion for getting the end of year calculations accomplished. Look for those checks to be coming shortly.

Thanks for giving me the opportunity to work on your behalf. 2011 has been a lot of work and challenging. I have found if to be fun and gratifying. I look forward to continued progress as we begin 2012.

Yours Truly,

Dave Mayper

Executive Director PFOA