Scripts, they would love to do a deal with Walgreens as long as its in line with everybody else. I would think that if Walgreens gets the same terms as CVS, its a fair deal. I just don't understand why WAG is shooting itself in the foot and losing customers and traffic to its major competitor.
I think it comes to down defining what a generic is, as george said.
you know the argument...if you dont it has to do with generic, authorized generic, and when to MAC.
George said this is the key point to the conflict (lots of money on the line for this definition).
"You both are arguing over stupid points."
Robbsbeach tends to raise A LOT of stupid points. I just point them out to him.
"The game has changed"
The game has changed constantly since 1901.
"PBMs are looking past these major patent expiration period for growth."
Looks like one of Robbsbeach's grammatically challenged, nonsensical statements.
"Its all about specialty! and preferred networks."
Show me the numbers.
"This is the seed that has been planted not a renaissance in drug retail, look at Borders/ B & N, Circuit City, Soon to be best buy, blockbuster, etc. "
That's a nice short list of companies and defunct businesses. Unfortunately, it has nothing whatsoever to do with "patent expiration periods", specialty and preferred networks, or ANYTHING ELSE currently being discussed. It's simply a list of current and past companies. You seem to take pride in listing obscure, unrelated, irrelevant examples. To me, it just shows how out of touch and uninformed you are.
"Whichever way you want to look at it, shareholders have been rewarded owning PBM companys, ie. CVS, SXCI, MHS, ESRX, Catalyst. WAG/RAD are not performing well."
RAD is not performing well. WAG stock is not performing well. WAG's comps are down, pretty much as expected. We'll see how WAG "performs" after the next quarterly earnings are posted.
"If I were a WAG shareholder, my only concern would be if MGMT really has a plan?"
So you aren't a shareholder? What are you doing here?
"ESRX has laid out what they wish to accomplish, as has CVS."
Really? What would THAT be?
Do you think that WAG hasn't laid out what they wish to accomplish? Where have you been for the last 10 months, under a rock?
"How does greg plan on increasing profit/sales (in other ways except cost cutting and generic medications). "
Next January, WAG will be going against it's own non-ESRX numbers. Like I said above, the PBM selling season has just begun. Whatever business WAG gains from the droves of unhappy ESRX customers will be reflected in those comps (in addition to whatever non-ESRX related comp increases are incurred).
"Just remember a 10% cut from here makes WAG a company worth 25B. MHS sold for 29B, I think Caremark sold for 25-26B. Who buys WAG? "
Yeah, let's start some buy rumors. That'll be good for a quick pop. BUT WAIT!!! You're not a stockholder, remember?
we believe that a substantial portion of Medco clients, measured by prescription volume, have contractual options meaning the contracts either have change-of-control provisions; provisions requiring certain named pharmacies versus just the number of access points; the right to direct the contract if necessary; and/or are expiring in the relatively near term. This appears very different than Express Scripts where Express Scripts, by their own public statement, so that only a small handful of customers have the contractual right to include Walgreens in the network and to our knowledge, we've contracted directly with or created other arrangements to continue to serve nearly all of them
Don't get to worked up over Contracts,
They are a starting point in a business relationship, Esrx/Medco is introducing a saving program with or without Walgreens
and these Retail Rx contracts are non-steering to network providers, i.e. CVS, Walgreens,
Walmart, Target, etc..
Walgreens, I believe is going to wait this out just like they did in June 2011.
The B.O.D's at Walgreens don't understand the PBM business models effect on retail Rx's, but they do understand the numbers..
Buying insurance now is not a bad thing!!
Risk is On:
I understand the reasoning in both sides impasse, However, June's Rx numbers from Walgreens will show the
Mountain climb. that is ahead.
The M&M have a dual interest here and Div's are a big part. it will be interesting when they choose a side in this impasse.
I will get back in when my new S/P target appears, and we may even here from big.yank should this number appear!!!