Walgreens Boots Alliance Inc (WBA)

[Robbay]

Inventory Management!!

My point big.yank is that Walgreens owned the Wholesale Rx supply chain/Inventory distributed to its retail outlets(stores) under the 340B program.
This now is owned/controlled by ABC (ABC Walgreens 10 year agreement).

Alliance Boots and Walgreens last year formed WBAD as the purchasing agent for Alliance Boots and Walgreens.
Walgreens now is using ABC as it primary Drug Wholesaler and turned over it's Wholesale/supply operations to ABC..

Walgreens is not Warehousing Drugs for its retail supply chain distribution,
and therefor has to change its Inventory/accounting for the 340B drugs purchased including the discount from manufactures for the 340 program.

ABC is now buying these Drugs to supply Walgreens 340B retail distribution, and will be shipping to Walgreens with a "just in time inventory program", also carrying these 340B asset on ABC books.

I'm only guessing.. but I think Walgreens aggregate cost for drug spending will go up not down with its short term borrowing costs included.
WBad the JV with Allince boots will benefit and as walgreens to date is only a 50% partner the remaining 50% will go to alliance boots.
Walgreens Cash flow has been a issues I focused on with the current asset sales..
Now put into that picture Walgreens Inventory assets and borrowing costs for the 2nd step..+(ABC warrants), (the buyout of Alliance Boots) and the Walgreens short term debt financing will increase as pricing under Gov't and 3 party payers are seeking to lower costs.

Walgreens mail order would provide a lower distribution cost...
But, Do they even own this anymore??

Regards,