Walgreens plans to recoup losses from Express Scripts breakup
January 5, 2012 by Sarah
Deerfield-based Walgreen Co. is busy making adjustments as it reacts to the termination of its partnership with the Express Scripts pharmacy network. Walgreens anticipates lower net sales, cash flow and profit for the rest of the fiscal year from losses related to the split.
The pharmacy chain predicts losses of 2 cents per share in the first fiscal quarter of 2012. Printing services may be called up to notify pharmacy customers that Walgreens stopped filling prescriptions for Express Scripts as of January 1, 2012. Despite the somewhat dismal first quarter predictions, Walgreens believes it will be able to hold on to about 98 percent of its prescription volume in fiscal 2012.
Walgreens is counting on more than 100 other health plans, employers, and some 10 million Express Scripts customers who plan to keep filling prescriptions with the pharmacy. Nevertheless, that’s a far cry from the 88 million Express Script clients who used Walgreens for prescriptions before the partnership ended. The company stated in a regulatory filing that it’s confident other clients will want prescription plans with Walgreen which will hopefully fill the gap left by the split with Express Scripts.
St. Louis-based Express Scripts was founded in 1986. The company processes millions of prescriptions annually through home delivery and at retail pharmacies, according to information provided on its website.
Walgreens was founded in 1901 by Charles R. Walgreen, Walgreen was born near Galesburg, Illinois, and later relocated to Dixon, Illinois. The company grew steadily over more than a century. Today, Walgreens opens more than 400 new stores each year.