Walgreen 1Q Profit Falls 4.5% Amid Higher Costs |
| Wall Street Journal - Dec 21, 2011 |
Walgreen Co.'s (WAG) fiscal first-quarter earnings fell 4.5% on higher costs as the drugstore chain says an attempt to secure a contract agreement with Express Scripts Inc. (ESRX) last week was unsuccessful.
Shares were down 6% to $31.50 in recent trading, as earnings missed expectations. The stock is one of the worst performers in the S&P 500 on Wednesday.
A conflict between Walgreen and the pharmacy-benefits manager over new contract terms erupted publicly in June, when Walgreen said it wouldn't be part of Express Scripts' network when their current deal expires after this year.
A Walgreen exit from Express Scripts' network would mean the benefit manager's clients would have to go elsewhere to fill prescriptions. However, based on current estimates and the assumption that it won't be in the Express Scripts network in 2012, Walgreen said it expects to achieve 97% to 99% of its fiscal 2011 prescription volume.
President and Chief Executive Gregory Wasson told analysts during a conference call that more than 100 health plans, employers and other Express Scripts clients have told Walgreen they have either changed pharmacy-benefits managers or taken other steps to maintain access to the company's pharmacies next year.
Read Full Article from Wall Street Journal
- Posted: 2011-12-21 11:41:24
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
