Jun. 24, 2014, 7:33 AM
Jun. 23, 2014, 5:30 PM
Jun. 18, 2014, 7:26 AM| 2 Comments
Jun. 11, 2014, 7:48 AM
- A new report forecasts Walgreen (WAG) could save $4B in federal taxes over the next five years by relocating its headquarters to Switzerland.
- Though some large shareholders are pushing for the company to make the tax inversion move, the action could also cause a major public relations backlash with Walgreen bringing in a quarter of its revenue from Medicare and Medicaid.
- A decision on the issue is expected by the end of the summer.
Jun. 4, 2014, 8:13 AM
- Walgreen (WAG) reports sales increased 6% Y/Y to $6.57B in May.
- Comparable-store sales were 4.4% higher during the month, led by a 5.5% gain in the prescription sales comp.
- Customer traffic in comparable stores fell 0.5% for the period, while the average basket size increased by 3.1%.
- WAG +0.3%
May. 19, 2014, 12:05 PM
- Walgreen (WAG +2.2%) moves higher after weekend reports indicate the company is considering buying Alliance Boots outright.
- Hedge funds Och Ziff, Jana Partners, and Corvex have been pressing the company to maximize the Alliance Boots investment.
- More in Walgreen-Alliance Boots: Synergies piling up, inversion plan on the table
May. 18, 2014, 4:07 AM
- Walgreen (WAG) is thinking about buying the 55% in European peer Alliance Boots it doesn't own, The Sunday Times reports.
- Taking inspiration from Pfizer in its pursuit of AstraZeneca, Walgreen would then move its domicile to the U.K. or Switzerland in order to lower its tax rate and save billions of dollars a year.
- Walgreen purchased 45% of Boots in 2012 in a cash-and-stock deal worth $6.7B and has a three-year option to acquire the rest.
May. 15, 2014, 9:22 AM
- Alliance Boots says its collaboration with Walgreen (WAG) has led to synergies piling up ahead of targets.
- Walgreen has a six-month window starting in 2015 to exercise an option to buy the rest of Alliance Boots.
- Related: Walgreen inversion - these Alliance Boots are made for walkin'
May. 12, 2014, 11:02 AM
- A plan by Pfizer to acquire AstraZeneca in a move that could help the company lower corporate taxes puts a spotlight back on Walgreen (WAG +0.9%) to make a similar move.
- Hedge funds have been pressing the board at Walgreen to back a relocation as part of its integration of Alliance Boots.
- Speed is of the essence with politicians in Washington D.C. making noise about relocation "inversions" deals.
May. 8, 2014, 7:20 PM
- FedEx (FDX) is changing the way it charges to ship bulky packages; instead of charging by weight alone, all ground packages soon will be priced according to size, which effectively will raise prices on more than a third of its U.S. ground shipments.
- Such a move would greatly affect bulky but lighter weight items like toilet paper and diapers, but the changes also would profoundly affect Web retail shoppers, who often buy multiple clothing or footwear items - perhaps with free shipping - then keep what fits and return the rest.
- For Amazon (AMZN) and other big online retailers, shipping is already one of the biggest and most rapidly increasing costs; e-commerce retailers likely would be affected by differing degrees, with the biggest companies such as Wal-Mart (WMT), Walgreen (WAG) and Saks (SKS) having advantages in their ability to negotiate pricing with FDX.
- UPS has not yet followed FDX's move, but the two companies historically have matched each other's price increases.
May. 5, 2014, 8:45 AM
- Walgreens (WAG) says same-store sales rose 7.6% Y/Y in April, benefiting from a later Easter, which fell on April 20 this year.
- In the front end, same-store sales rose 8.2%; customer traffic on a same-store basis improved 2.6% and basket size rose 5.6%.
- Pharmacy segment same-store sales rose 7.3%, and same-store pharmacy prescriptions filled rose 3.5%; pharmacy sales accounted for 65% of WAG's total sales in April.
Apr. 14, 2014, 1:44 PM
- A number of hedge funds with a piece of Walgreen (WAG +2.5%) are pressing the firm to relocate to Europe for tax purposes.
- The group thinks the company's ownership in Alliance Boots gives it the avenue to make the transition.
- Walgreen isn't considering the option at the moment, according to reports.
Apr. 11, 2014, 4:01 AM
- The White House has confirmed that Health & Human Services Secretary Kathleen Sebelius is resigning and will be replaced by Sylvia Burwell, the director of the Office of Management & Budget, assuming the latter is confirmed by the Senate.
- Sebelius' departure comes after she said in October that she should be held "accountable for the debacle" of the launch of Obamacare, although the program did reach the government's target of 7M sign-ups by the end of March. She said yesterday that at least 7.5M people have enrolled.
- One of Burwell's first challenges will be to work with health insurers as they set prices for Obamacare plans in 2015, which industry executives have warned could rise sharply.
- More on Obamacare
- Health insurers: AET, HNT, HUM, UNH, WLP, MO
- Hospital operators: HCA, CYH, THC, UHS, HMA, LPNT
- Pharmacies: WAG, CVS, BIOS, RAD, MHS, PMC, OCR
- ETFs: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS
Apr. 10, 2014, 10:57 AM
- Per CVS Caremark's (CVS) Insights report prescription drug trend rose 3.8% last year versus flat growth in 2012. Growth drivers were price inflation and increased utilization (more prescriptions per member).
- Specialty medications that treat more complex diseases grew by 15.6%.
- The company generates the report, which includes an outline of cost containment strategies, to assist payers with their management of prescription drug spending.
- Drug trend is the measure of growth in prescription spending per member per month.
- The generic dispensing rate was 81.4%.
- (RAD) (WAG)
Apr. 9, 2014, 1:52 PM
Apr. 3, 2014, 1:17 PM
- The buyer is Water Street Health Care Partners, and Walgreens (WAG +0.8%) will retain a minority stake in Take Care and be the preferred strategic partner with Water Street.
- Take Care is a Walgreens subsidiary managing over 360 worksite health centers across the country. At the same time, Water Street has agreed to get a piece of CHS Health Care Services, a provider of 130 worksite health centers.
- Financial terms were not disclosed and Walgreens doesn't expect the deal to have a material impact this fiscal year.
- Press release
WBA vs. ETF Alternatives
Walgreens Boots Alliance Inc operates drug-stores chain in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drug-stores, as well as mail, and by telephone and online.
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