In The Pill Box.

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  • Author(s): Lambert, Emily (AUTHOR); E. L. (AUTHOR)
  • Source:
    Forbes. 4/26/2004, Vol. 173 Issue 9, p54-56. 3p. 2 Color Photographs.
  • Additional Information
    • Subject Terms:
      WALGREEN Co.; DRUG prices; RETAIL industry; SALES; MEDICAL laws; PHARMACY laws; DRUGSTORES; INSURANCE companies; HEALTH policy; DIRECT selling; MAIL-order business; MANAGED care programs; AMERICAN business enterprises
    • Abstract:
      Walgreen Co., the nation's largest pharmacy, is a growth story for the ages.The stock is up more than 3,000% over the last 20 years. Same-store sales rose 9% in fiscal 2003 at the 103-year-old chain, which is sitting on $1 billion in cash. Plans are to build 3,000 new stores by 2010 on top of the 4,336 it already has.Could anything go wrong with this happy story? Yes. Pharmacy benefit managers. PBMs advise employers and health maintenance organizations how to save money on prescription drug costs. And one way they do that--or claim to--is by having patients get their long-term prescriptions (say for diabetes or cholesterol drugs) by mail. Gregory Wasson, president of Walgreens Health Initiatives, which includes his company's mail-order business, insists that you don't get any real bargain ordering by mail. Walgreen has joined other retailers to support legislation in Michigan that would force PBMs to get rid of mail's cost advantage by forcing PBMs to offer plans a retail version of any 90-day bargain they offer by mail (see box). INSET: There Oughta Be a Law.