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News Breaks
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February 10, 2012
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| 12:27 EDT |  | WAG, MHS, ESRX |
| theflyonthewall.com: | Walgreen volatile as Express Scripts uncertainty remains | | Walgreen (WAG) shares continue their volatile trading on greater than usual volume, as speculation continues to circulate about a new contract between the drug store chain and pharmacy benefit management company Express Scripts (ESRX). In a note to investors, Macquarie speculated that the two companies would agree to a contract within the next several months. The firm, which upgraded Walgreen to Outperform from Neutral, predicts that Express Scripts will come under increased pressure from its clients to resolve the dispute. Furthermore, Express Scripts could have problems during its 2013 PBM selling season if its doesn't reach a deal with Walgreen, Macquarie contends. Conversely, Citigroup on February 7 stated that Walgreen and Express Scripts were unlikely to reach a new accord. After conducting a survey of benefits managers, the firm reported that 35% of the managers polled don't expect the companies to resolve their dispute. Citigroup downgraded Walgreen to Sell form Neutral, noting that 75% of those surveyed said that employees hadn't significantly complained about Walgreen's departure from Express Scripts' network. Also muddying the picture is the controversial planned merger between Express Scripts and Medco Health Solutions (MHS), which may be decided upon by the FTC within the next 30 days, according to Bloomberg. Earlier in the week, a Reuters story set off rumors that the FTC was preparing to block the tie-up. Near mid-day, Walgreen has climbed 38c, or 1.11%, to $34.59. The stock has risen about 2.7% since Monday's open. Meanwhile, Express Scripts lost 0.26% today, to stand at $50.15 near noon. ESRX has fallen about 1.9% since the start of the week. :theflyonthewall.com |
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May 25, 2012
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| 06:36 EDT |  | ESRX |
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