Express Scripts Inc (ESRX.O) might lose a "small fraction" of its business from a dispute with drugstore chain Walgreen Co (WAG.N), its chief financial officer said on Wednesday, but it would not be a significant amount. Express Scripts, which manages prescription drug benefits for employers and other clients, has been locked in a high-stakes public dispute with Walgreen since June, when the largest U.S. drugstore chain said it would stop filling prescriptions covered by Express Scripts at the end of the year after failing to agree on contract terms. Express Scripts prescriptions are expected to be worth $5.3 billion in sales for Walgreen this year, or about 7 percent of the chain's total expected revenue. Speaking at an investor conference, Express Scripts CFO Jeff Hall said many of its customers support the company in the dispute because they do not want to pay a premium price to have Walgreen in the network.
Express Scripts, Inc. is a pharmacy benefit management (PBM) operating in North America, offering a range of services to its clients, which include health maintenance organizations (HMOs), health insurers, third-party administrators, employers, union-sponsored benefit plans, workers? compensation plans and Government health programs. Shares of ESRX fell by 1.07% or $-0.47/share to $43.46. In the past year, the shares have traded as low as $43.09 and as high as $60.89. On average, 9267080 shares of ESRX exchange hands on a given day and today's volume is recorded at 6396977.
Walgreen Co. (Walgreen) together with its subsidiaries, operates a drugstore chain in the United States. Shares of WAG traded higher by 1.64% or $0.59/share to $36.52. In the past year, the shares have traded as low as $28.83 and as high as $47.11. On average, 8662800 shares of WAG exchange hands on a given day and today's volume is recorded at 4682801.
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