Well here's my take on the biggest issues facing wag and other retail pharmacies to get their stock back up.
1. The push for mail order only programs by PBM's. Employers like the cost reductions and pbm's like pimping higher rebate drugs. Only loser is the employee. Wag has pushed back on those but now cvs has a PBM so its possible in some areas to let wag fall out of the program and shift the business to CVS stores or other players. Wag could lose the boycotte battle like the indi's did the 3rd party rate reductions years ago.
2. Mail order continues to grow significantly. While the effects of mail order have been clouded by older population using more scripts the loss of business is there and will grow.
3. Store opening rate must increase. They might expand their acquisition efforts to help. But increasing growth rate comes with a cost.
4. Margin pressure from PBM's. As long as PBM's can get some chain to fill scripts for a given rate they will continue to push reimbursments down. Free standing entities have the highest cost scriptburger joints to fill scripts.
5. Some other major player other than wag merges with a PBM. Wag could slowly be squeezed on a second front.
6. The AWP correction factor cleaned up. Everyone knows lots of money is made on generics because the cost of the drugs are cloudy as it the reimbursment point. If generics ever get accurately costed out margins could take a hit.
7. Importation of drugs. Its interesting that Americans are still screwed into subsidizing cheap drugs for the rest world. Eventually the fact we import tons of food and drugs already will be exposed. The scare tactic won't work and the ability to have protected foreign supply of quality drugs will prevail. Besides where do the mail order operations and other players get their drugs now? Huge margin squeeze here if importation is legalized for the consumers.
8. Figuring out what they want to be when they grow up. Wag management seems to be trying to figure out what they want wag to look like in 10 years. They try things like clinics in store, home infusion, filling printer cartridges. etc. Just my thoughts nothing is true I made this up.
just look at the post time, 10:27 pm, rambling drunk! All old news. More generics, means more suppliers, direct access will become cheaper than going through a pbm. Why do you think caremark has been sold like 5 times in the last 7 years?
its all about delivery and wag has the locations, the mail order and the workforce. Nobodys going to do it for free, not rad, not cvs, not esrx. If wag connot be competative alone, someone will buy them. Their network is too valuable with their 6000 prime locations. CVS is going to be under preasure with their poor eckards locations. Thats why eckards was a poor chain. The cvs near where I live is hard as heck to even get into the parking lot and you can only do it going 1 way and there is nothing else there.. The wag doun the street is in a nice grocery type shopping center and easy in and out.
Isn't this idiot, eliminate, the same pompous dickhead who admitted that he has NEVER owned Wag stock, NEVER worked for the Walgreen company and washed out as a failure from the retail pharmacy business? Why in the hell would ANYBODY listen to this crackpot, who is only 1/2 step above the slimy Yank? Anyone? I see NO credibility, NO expertise and NO business giving advice about a subject he is totally IGNORANT about! JMHO!