I was just reviewing Cantor Fitzgerald's buy rating and saw a Huge misstep in the Generic projection value.
As Walgreens and A/B receives discounts from foreign Generic manufactures, these drugs will be stored in Warehouses around the Globe of A/B and in Walgreen's US Warehouses. As these large drugs buys are oversupplied in some Countries and under-supplied in others, The transferring of these controlled medicines hits a Wall/closed door when the are needed into the US market.
rob - I do not have access to the actual Cantor research report (if you do could you please post). However, from the few articles I have read I believe the analyst was referring to the sale of generics vs brand name drugs and had nothing to do with Boots. Selling generics is more profitable for pharmacies than selling branded drugs. Blockbuster drugs coming off of patent are always a boon for drug stores. A side effect is that it does lower revenues since they are sold at a cheaper price. But analysts who follow the industry understand that.
So, lets move forward to the KKR move into building revenue.
Walgreens, had made numerous Acquisition this past year, and integration with direction of these have not been discussed. Or, if any of these buy's has added to the bottom line, with-out the adjustment for reserves factored in. Drug Store.com did we all forget about this..