Walgreens Boots Alliance Inc (WBA)

[big-yank]

Since a lot of big pharma and most of generic pharma is sourced from outside the U.S., CVS and RAD have no exemption from unfavorable changes in exchange rates. They are affected by changes in drug pricing, up or down. The effect on Walgreens can be either favorable or unfavorable depending on the exchange rates and relative strength of the dollar.

Of course free cash flow is important. As Walgreens future results seem headed in the likely 50/50% direction of U.S. dollar to Euro/other currencies, they may well be in the optimally balanced position where global exchange rate variability becomes immaterial to their financials. It is almost like the hedge fund play of market "net neutral" but applied to cash management. The very nature of Walgreens new wholesale agreement with Amerisource-Bergen is extremely friendly to freeing up cash resources, as well as benefitting several other areas in their supply system.

I have stated previously that I expect further news on the ABC relationship over the near term.

GLTA.