Rite Aid Corp. (RAD) may see more pharmacy customers as a result of the dispute that threatens to end the relationship of larger rival Walgreen Co. (WAG) and pharmacy-benefits manager Express Scripts Inc. (ESRX).

Rite Aid could even pick up some disgruntled customers if Walgreen and Express Scripts resolve their dispute and Walgreens pharmacies remains part of the network of pharmacies Express Scripts clients use, Chief Executive John Standley told listeners at the Goldman Sachs retail conference in New York.

Standley noted it is too soon to tell how many customers it would gain, if any. In any event, he said it is unlikely the battle between Walgreen and Express Scripts will lead to a "sea change" in the PBM industry and the costs for drugstores.

The increasingly heated battle grew more intense this week, as Walgreen began distributing materials to employers and insurers, stating why it feels talks with Express Scripts are at a standstill. Walgreen said, among other things, that Express Scripts balked at Walgreen's offer to promote 90-day prescriptions at retail, saying Express Scripts wants to protect its own 90-day mail-order business. It also suggested that losing Walgreen could violate some contracts with insurers and employers have with Express Scripts that mandate patients having ready access to 24-hour pharmacies, a position Express Scripts disputed.

On Thursday, at a separate presentation at a conference hosted by Stifel Nicolaus, David Myers, vice president of investor relations at Express Scripts, criticized Walgreen's approach during the dispute.

Myers said it was "a shame" the drugstore negotiated only briefly and then went public with the issue while six months remained on the current deal. He also accused Walgreen of "spreading a tremendous amount of misleading and inaccurate information," and said the company never responded to a recent Express Scripts offer that guaranteed Walgreen's rates would be "in the middle of the pack of all pharmacies in our network."

Not just Walgreen is trying to shake up the PBM cost structure, Rite Aid CEO Standley said. Wal-Mart Stores Inc. (WMT), the world's largest retailer, is aggressively moving to discuss costs with large employers, insurers and PBMs, as more patients opt to take advantage of Walmart's $3.99 prescriptions.

Rite Aid hopes to remodel hundreds of stores in its aging base this year, but Chief Financial Officer Frank Vitrano said those remodels are getting off to a slow start.

Vitrano acknowledged the companies massive debt load, and said it plans to fund its next significant debt maturity in 2013 through its revolving credit facility. In response to a question, the executive said Rite Aid, which has been enjoying same-store-sales growth in recent month after a lengthy period of malaise, may be "modestly" cash flow positive this year.

-By Maxwell Murphy, Dow Jones Newswires; 212-416-2171; maxwell.murphy@dowjones.com

--Jon Kamp contributed to this article.

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