All well and good if they can bypass Express Scripts and cater to the individual companies but that will take time to aquire agreements. The only thing working in Walgreen's favor is the pitiful customer service with Express Scripts. I have had to wait for my order from them only to have to call the doctor to send me out a script for a week or so till my order would get to me. So much for snail mail for meds, at least with Express. Hope it all works out guys. Best of luck.
Fair enough, but the great thing is that their strategy is changing! Wag goal is to have 50% of express scripts business straight from individual companies. They already have about 25%. Hopefully their plan will work. Their is never a sure thing when it comes to investing, but there is a whole lot of other places you can put your money and be on a losing side. Just saying don't count wag out.... They have surprised everyone in the past many times. WAg and ESRX are pretty cunning companies and they will survive and grow. I just prefer WAG between the two.
Stock price will take a hit. In long haul what WAG is doing will be considered brilliant in the future. Walgreens again will be known for changing the landscape of drugstores and now the overall health industry!
2 or 3 years from now Wag will be sitting pretty Rad will be gone Pbm's will go back to doing what they were intended to do from the start
If people are really investing for the long term. Then they will reep the increase Of divi's over the years!!!
big.yank you might want to listen what the Walgreens temple guardians are saying. David Karish had such a following, and after all this is about Investing.
The Walgreens pied Piper has its following, so as investors we should rely on information more than speculation or Rumors. 5 billion in treasury stock will it offset losses in the next 3 years?? What Stephanie said is no different than the CFO, who's only view was miles and miles of separation.
Like I said, Walgreens is still selling Woodies while the market is buying SUV's
I hope Stephanie knows how to make Sushi after 1/1/13, because as Cmxgen stated there are a lots of Pharmacy grads looking for work and they own an Ipod..
It seemed a week ago that maybe something was in the works with ESRX, but that was strictly based on stock price appreciation.
In terms of what we hear internally (disclosure: I am WAG employee), it doesn't seem that much is happening with the ESRX talks. Rather, all the chatter is about direct contracting with various entities that will allow WAG to bypass the middleman (in the case, ESRX), thus making the lack of a contract with ESRX less relevant to WAG's business model going forward.
One of the very interesting, and probably unintended, consequences of the direct contracting that WAG is currently engaged in is that it really calls into question the importance (maybe even the relevance if we project far enough out) of the PBM. It seems only logical that by eliminating the middleman (i.e. the paper pusher, in this case, ESRX), who is actively siphoning off billions of dollars from premiums for overhead, executive compensation, share buy-backs, etc., much of that money could be put to better use by actually paying for healthcare rather than golden parachutes and private jets and the like.
Maybe I'm just an optimist, but food for thought...