Walgreen dispute with Express Scripts should be resolved, says Gabelli
tweet0EmailPrint. .Companies:Walgreen Co.. On Wednesday June 22, 2011, 9:13 am EDT Gabelli expects the contract dispute between Walgreen (NYSE:WAG) and Express Scripts (ESRX) to be resolved in the next couple of months.
rIGHT NOW express Scripts has everything to lose and wag has nothing to lose until 2012. EXPRESS SCRIPTS must answer the following question from potential new customers and from companies looking to renew their contract.
"If wag is leaving your network...you dont have the geographic coverage that other pbms have for my employees...and how do we know cvs or rad wont be leaving anytime soon as well....it seems like your company is not in a stable position for me to put my workers lives in your hands...why should we come on board with your company?"
DURING the next 6 months if nothing is done to resolve this..Express scripts can potentially lose billions of dollars in lost contracts.
After 6 months wag can potentially lose billions in sales if this is not resolved...but express scripts will Be losing all the way up jan 2012...and after.
Wag made a genious move announcing this so early. I applaud them...the pressure is now on the other party.