Walgreens Boots Alliance Inc (WBA)

[big-yank]

I'm not saying that you are wrong on the shift to wholesale, and I actually predicted WAG would make a move on H.D. Smith or a mid-sized distributor. But their dilemma can be discerned from their failed PBM experience where being a minnow in a pond of huge-jawed Alpha-fish doomed them to abject failure vs. CVS, UNH, ESRX & Medco.

The problem, going forward, is that the HUGE cost of Alliance/Boots which you correctly identify leaves them incapable of acquiring a major player in the wholesale segment. They don't have enough cash to complete A/B and a second major deal like with ABC. WAG could not afford MCK, IMHO.

Consequently, they are STUCK with their drugstore/sushi/flu-shot model for the foreseeable future.