Express Scripts Cites Smooth Transition From Walgreen
February 23 2012 - 10:28AM
Dow Jones News
Express Scripts Inc. (ESRX) has had a smooth transition away
from its relationship with Walgreen Co. (WAG), which left the
pharmacy-benefit manager's network on Jan. 1 following a
contract-renewal dispute, Express Scripts Chief Executive George
Paz said Thursday.
The broken relationship meant people with drug benefits covered
by Express Scripts--about one-fifth of the company's business--had
to find another pharmacy to get the best price when filling
prescriptions. Express Scripts added staff ahead of the shift to
handle customer calls and guard against disruption.
"We're quite content where we sit today," Paz said regarding the
move. He spoke on a conference call with analysts following Express
Scripts' earnings release late Wednesday.
He reiterated that the company remains willing to talk to
Walgreen about potentially renewing the relationship, "but it has
got to be in the best interest of our shareholders and
patients."
The companies could not come to agreement on
prescription-reimbursement rates before their prior contract
expired. Both companies have accused the other side of pushing
unreasonable terms.
Express Scripts' fourth-quarter earnings were lower than
analysts expected, despite stronger revenue, as the company spent
to accelerate projects and free space for the integration of Medco
Health Solutions Inc. (MHS). Express Scripts plans to close a
planned deal for Medco, a rival PBM, in the first half this year
provided the companies achieve U.S. antitrust clearance.
Express Scripts shares traded up 2.8% to $53.05 early
Thursday.
--By Jon Kamp, Dow Jones Newswires; 617-654-6728;
jon.kamp@dowjones.com
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