There is not going to be a deal. we were told at store level that wags was moving forward without esrx. a proposal to cover the militry was presented to esrx, and that was rejected by esrx. lots of hour cuts are already planned for stores come the first of the year. If the esrx/medco deal goes through lots of the wags loss will be covered, and another contract deal will have to be negotiated with the merger. bottom line is that wags wanted more money, and the execs at this stupid company got shown the door. the dec 21 conference call will be a very important one. lots of downgrades in the past month, maybe more on the way once wags lowers guidance for the following quarters. Up to 20% of scripts in some stores will be gone, depending on the market.
20% reduction across the board sounds steep.
I wonder what the brand reimbursement model would have been?
Generics would be MAC'd, so I am not sure how that would work.
If ESRX business was 7B and 90% of that is branded business, a 1% reduction in AWP off discount% would be a little eye opening.
ESRX also said that WAG would be most expensive when compared to other pharmacies.
Whichever way it goes, WAG/CVS/retailers/independents have to acknowledge that year after year, reimbursements will continue to be pressured and forced lower by PBMs.
From what I heard WAG wanted the same reimbursement rates as the current contract..in addition to some dickering on MTM. ESRX offered a 20% redution across the board...no MTM fees. ESRX touted that WAG demanded a 20% increase in the contract renewal which wasn't true..WAG wanted the same and didnt want to take 20% less than what was current. ESRX spun it to clients as WAG wants a 20% increase.....
If you think WAG is the only one to suffer..wait till ESRX went to renegotiate with other Pharmacies. They wouldve been forced to fill under cost.
ESRX is just the middle man....PBMs are going by way of the dinosaur...dirct contracts will be the wave of the future. WAG direct contracts now.
The only way CVS Caremark is relevent is they have to low ball contracts and give it away hoping they make up for it on the front end.
What a waste of Time and Money.
You call this a Stratergy?
I would call this Spinning the Wheel of Fortune and putting your winnings on 1 number.
I would think that PBM's are looking to carve out Generic Lipitor for M/O only.
I left you a message in testing the Rumor, did you get it??
I think WAG expected ESRX to blink.
WAG has used this strategy before and succeeded. However, you can only call the same play so many times.
I continue to say WAG will do well, but I think they will take it out on the retail pharmacist/ employees.
The macro picture looks bright for CVS, they are getting free market share.
Lipitor generic is coming soon! worth lots of money!