Walgreen Jumps on Express Scripts Deal

by InvestorPlace Staff | July 19, 2012 2:24 pm

Shares of drug store chain Walgreen (NYSE:WAG[1]) soared Thursday on news that it finally had come to terms with pharmacy benefit manager Express Scripts (NASDAQ:ESRX[2]).

WAG shares were up around 11% in early afternoon trading, helping to recover from nearly 30% losses since last June, when the company failed to renew its contract with Express Scripts. ESRX shares were up a much more modest 1.5%.

Meanwhile, Walgreen competitors CVS Caremark (NYSE:CVS[3]) and Rite Aid (NYSE:RAD[4]) — who had been benefiting from an exodus of Walgreen’s Express Scripts customers — were down 6% and 5%, respectively.

Details of the multiyear contract had not yet been released.

Endnotes:
  1. WAG: http://studio-5.financialcontent.com/investplace/quote?Symbol=WAG
  2. ESRX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ESRX
  3. CVS: http://studio-5.financialcontent.com/investplace/quote?Symbol=CVS
  4. RAD: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAD

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