Here we go again.
On Tuesday CVS Health lowered its profit outlook, due partly to “the projected loss of more than 40 million retail prescriptions related to marketplace changes, including new retail pharmacy networks that are excluding CVS Pharmacy drugstores.” Its stock closed down 12%, before bouncing back slightly in yesterday’s post-Trump healthcare rally.
CVS Health placed the blame squarely on Walgreens Boots Alliance (WBA), which has aligned with Prime Therapeutics and displaced CVS retail pharmacies from the TRICARE retail network.
Call it competitive judo: Walgreens has used the strength of CVS Health’s integrated PBM/retail model against the CVS retail pharmacy business.
The lesson? Don’t bet against Stefano Pessina, our global channels overlord and executive vice chairman and chief executive officer of WBA. Read on for my analysis of the latest pharmacy showdown.
Post-election trivia question: In 2010, which former drug wholesale CEO (and future U.S. ambassador?) encouraged Donald Trump to run for President? Answer below!
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