Walgreens Boots Alliance Inc (WBA)

[Robbay]

A Rx Wholesaler truce discussion.

Big.Yank I think we can have a non conflict discussion on Rx Wholesalers.. see if you agree.

Walgreens was the first to seek Wholesale buying leverage with AB, CVS followed with CAH, and McKesson is the latest entry.

ABC was brought in because of the problems in the US with Walgreens Warehouses also Alliance Boots did not have any Distribution Warehouses in the US or the licenses.
So a Warehousing partner was needed.

CVS was facing higher Rx costs than Walgreen would receive based on Volume so they combined the purchasing power of CAH and CVS.

McKesson understood that Volume would reduce costs for the retail and medical centers outlets they service and had no choice but to seek a partner to stay competitive and not lose market share.

Would you agree and add to this view?

Regard.