Walgreen and Express Scripts
This rift could be damaging to Walgreen's growth, especially as Express looks to become the largest PBM provider in the U.S. after agreeing to buy Medco Health Solutions
To offset the loss of Express Scripts, Walgreen is working directly with a host of health plans and employers (it refused to reveal names). It also acquired drugstore.com, which brings in 3 million customers and adds nearly 60,000 online products to Walgreen's portfolio.
Year-over-year quarterly revenues rose 7% to $17.96 billion as Walgreen's stores saw improved foot traffic and sales per customer. Comparable-store sales rose by 4.4%, higher than what rivals Rite Aid
The Foolish bottom line
Though Walgreen is putting up good numbers and planning ahead, I doubt that it will be able to make up for the revenue loss from the Express Scripts split. Walgreen, after all, did warn Wall Street that it will lose more than $3 billion in revenue in fiscal 2012. To stay up to date on what Walgreen does to compensate for Express' loss, add Walgreen to your stock Watchlist.