Content about Express Scripts

On Sunday, Jan. 1, Walgreens' contract with Express Scripts expired, and millions of Walgreens customers covered by ESI were forced to either move their pharmacy business to another pharmacy in the Express Script network or come up with some other way to stick with Walgreens. DSN editor Rob Eder on Tuesday interviewed Walgreens president and CEO Greg Wasson on what the company is doing to hold on to those customers and to appeal to payers, and what the potential ESI-Medco deal could mean.

The year appears to be off to a good start, and CVS Caremark executives were optimistic Wednesday morning as the company pulled in a “strong” first quarter and narrowed its 2013 guidance to reflect higher-than-expected performance.

Rite Aid reported a $123.1 million profit for fourth quarter 2013 and $118.1 million for the fiscal year - its first profitable year since 2007 - amid greater generic drug penetration and retention of at least three-quarters of the customers who switched over to the chain during the dispute between Walgreens and pharmacy benefit manager Express Scripts, among other factors.

In other words, the factors that helped fuel the nearly $62 million profit the company reported in third quarter 2013 have continued to hold, which means the 4,623-store chain has put itself on track for strong future growth, which will no doubt be helped along by the debt refinancing the company finished in February.

A joint conference by the National Association of Specialty Pharmacy and the Association of Managed Care Pharmacy attracted hundreds of leaders from across the specialty pharmacy industry.

While the country's spending on specialty drugs increased by 18.4% in 2012, spending on traditional drugs fell for the first time in 20 years, according to a report by Express Scripts.

Walgreens' February sales fell short of analyst projections due to a sharper impact from generic drug introductions.

CVS Caremark executives expressed optimism Wednesday morning as the company posted record fourth-quarter results, raised its 2013 guidance and continues to work to leverage its distinctive business model to help people on their path to better health amid a rapidly changing healthcare environment.

Walgreens reported January sales of $6.2 billion, an increase of 6.3% as compared to the same month in fiscal 2012.

Costco announced in its January 2013 magazine that it would begin offering pharmacy benefit management services, targeting small businesses and highlighting a 200-employee company based in Washington state.

It remains to be seen whether the club retailer's efforts to compete with the existing PBM businesses of companies like CVS Caremark, Walgreens and Walmart will be successful, and analysts like Citi's Deborah Weinswig appear skeptical that they will. But whatever the outcome, it's clear that Costco is looking to compete in a bigger way.

"2012 was definitely an important year for Walgreens," Greg Wasson, Walgreens president and CEO, told shareholders here Wednesday afternoon at the chain's annual shareholder meeting. "We did make some tough choices to protect and solidify … our position for the long term," he said. "[But] our vision is crystal clear to become the first choice for health and daily living in America."

A shift in the New Year's holiday calendar and the introduction of new generic drugs contributed to a decrease in same-store sales for the month of December at Rite Aid, the retail pharmacy chain said.

Walgreens executives last week were upbeat looking ahead to calendar 2013, identifying the company's growing base of Well Experience format stores, the expanding role retail pharmacy plays in the delivery of health care and the promise to be realized through creating a global pharmacy operator as the three primary reasons lifting their spirits.

A new, fast-growing loyalty card program and closure to the company's nine-month separation from Express Scripts' pharmacy network are working wonders on improving the perception of Walgreens' future potential. A fortified faith in Walgreens' full potential never left the company's executive suite, of course. It's Wall Street analysts that still need a little convincing, and that may be coming along as well.