Walgreens Boots Alliance Inc (WBA)

[big-yank]

J.P. Morgan's Lisa Gill got it right. Narrow network choices stand to benefit CVS. Their CMX PBM can drive customers to a narrower network with plenty of retail options close to most Rx consumers... and do so at lower cost.

The Tri-Care choice to exclude Walgreens to save money tells me two things. First, ESRX blinked and winked to make up with WAG. Second, narrow networks of preferred outlets is not going away as a retail Rx phenomenon and PBM's are starting to wrest the lever of control away from outlet-dominating bullies like Walgreens. Store count, 24/7 hours and drive-throughs are frills that payers will forego to attain Rx cost improvements for their clientele.

It's like the car buyers telling GM that we are not paying more for a Buick branded as an Oldsmobile simply because the showromm is nicer and the nameplate has an upscale cache'. SHOW ME THE MONEY!