Walgreens Immunization Business Flourishes while their competition languishes !!
On the heels of strong demand for immunizations in the past couple of years, Walgreen(WAG_) has expanded its immunization offering across all of its 7,700 stores, including Duane Reade pharmacies and Take Care clinics. It now plans to offer immunizations in all stores and gobble up a larger share of the health care professional shortage area (HPSAs). Walgreen competes and outclasses CVS Caremark(CVS_), Wal-Mart(they are such a joke) and Rite-Aid(who is about to go out of business). We value Walgreen at $43.75 Trefis price estimate of its stock, which is about 20% above the current market price. Vaccination offers a huge market of over $40 billion in the U.S. As the Center for Disease Control and Prevention (CDC) now recommends flu shots every season for everyone over six months of age, the demand for vaccination is strong especially in the flu season. With its extensive network of pharmacies and clinics, Walgreen is well placed to tap into a decent size chunk of the immunization market. Walgreen greatly expanded its flu-shot program in 2009-10. Despite lower-than-expected demand last season, it offered more than 5.4 million seasonal flu shots, or more than four times the previous year, along with 2 million H1N1 vaccinations. Walgreen thus expanded its market share in vaccination, providing more flu-shot immunizations than any other entity. This year, Walgreen has further expanded its flu shot program to extend vaccination availability to every store, every clinic, every day. Walgreen has more than 27,000 certified immunizing pharmacists lined up to meet its objective of tapping into the immunization market. With its wide network of pharmacies and clinics, Walgreen also serves the health care professional shortage areas (HPSA), which consists of more than 20% of the U.S. population. It provided more than one-third of its flu shots in HPSAs during the last flu season.
Yeah, WAG has a plan. They are going to attempt to sell alternative healthcare insurance. They think they can cut the PBM out of the loop and pocket their profits while retaining reimbursements higher than the rest of the pharmacy industry.
Walgreens doesn't take losses for their unused flu shots. They are basically risk-free for them. They pay for what they sell. So yea, you can see why they are going hard after the immunization markets.
IMO, it is likely to explode this year. Their market will get bigger just because the ever-growing boomers love Walgreens and less government means more private innoculations. They've already started giving flu shots and it's mid-August.
Like I said before (twice and both times deleted). This is the same hyph as last year only this time around the price is a couple bucks higher. Probably to make up for the short-fall on last years demand. Nothing is "flourishing" at Walgreens except the executive suite.