All the losses from the ESRX dispute have been fully recaptured, and then some. Not necessarily from the same customers and Rx's, but overall Walgreens business is as strong as ever. The downflow from the ESRX dispute affected ESRX as it did WAG; it was a stupid, harmful exercise for both parties and possible single-handedly saved Rite Aid from demise.
Many hedge funds do take longterm positions in equities such as WAG. Bruce Berkowitz @ Fairholme Partners was the fund manager of the decade following the Millenium and he almost totally takes longterm positions. Jeffrey Gendell @ Tontine Capital is another one. And Bill Ackman. Just to name a few.
I wouldn't be so quick to judge the Amerisource-Bergen relationship as disadvantaged. It is different from CVS. I think there is a lot yet to come that has yet to be divulged.
I do believe that a contest of will is emerging that pits purely low cost providers against established players like Walgreens and, yes, Boots. Assuredly, Rx's that are machine-dispensed and sent by mail in 90 day increments are cost-advantaged vs. a brick-and-mortar local drugstore, irrespective of whatever name adorns the marquee out in front. At some point, insurers or even the Feds that foot the bill for lots of Rx's may draw a line in the sand and insist this happen. But I think it is unlikely in the next few years, and probably politically inexpedient in my lifetime, in any major way. JMO.
But discarding a neighborhood pharmacy you trust, that provides all manner of convenient healthcare and household items and has a professional reputation for valuing customers and healthcare improvement just for a lower Rx price is unlikely to find traction with a statistically significant share of Walgreens established clientele. If price was everything to everybody, the Yugo would be today's top car brand, Sam's cola would have displaced Coke and Pepsi as the beverage of choice in global markets and the internet would be giving ground to carrier pidgeons.
GLTA.
