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Why This Pharmacy Is Still Bleeding

Walgreen (NYSE: WAG  ) recently put up weak numbers and is blaming its fallout with Express Scripts (Nasdaq: ESRX  ) for the trauma. While this is the case, it's easy to forget that it was Walgreen's own management that parted with Express Scripts at the end of 2011. After a rough patch, the two companies have agreed to play nice again, and Walgreen is filling Express Scripts prescriptions beginning this month. 

However, that doesn't mean the bleeding will stop anytime soon. Walgreen pushed a lot of customers into competitors' arms, and those are hard customers to earn back. See more in the following video.

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Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Express Scripts. Motley Fool newsletter services recommend Express Scripts. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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