The leading retail pharmacy chain of the US, Walgreen (WAG), is now offering immunizations across its 7,700 stores. This also includes all Duane Reade pharmacies in New York and more than 350 Take Care Clinics. The company also informed that flu shots (priced at $31.99 without insurance) will be available daily at its pharmacies for which no appointment would be necessary.
The Center for Disease Control and Prevention (CDC) now recommends flu shots for everyone over six months of age. Moreover, vaccination is now recommended in every season for full protection against influenza. To meet its objective of tapping into the immunization market, Walgreen has more than 27,000 certified immunizing pharmacists lined up.
Through the flu shot program, Walgreen will be capable of serving the health care professional shortage areas (HPSA). According to the US Department of Health and Human Services (HHS), more than 20% of the US population lives in an HPSA. Based on its wide network of pharmacies and clinics, the company provided more than one-third of its flu shots in HPSAs during the 2009-2010 flu season.
During the flu season last year, although industry-wide demand for shots was lower than expected, Walgreen continued to grow its market share. The company is undertaking several steps to become a prominent player in the $40 billion total immunization market. Apart from the federal government, Walgreen provides maximum flu shot immunizations than any other single entity in the US.
Walgreen is working toward establishing itself as a leading provider of pharmacy, and health and wellness solutions. While the economy is slowly improving, unemployment remains high at 8.9%, and food and gas prices are rising. Rising costs coupled with unemployment makes the customers more value-driven. Consequently, spending on discretionary items gets impacted.
However, Walgreen has been taking a number of steps to align its assets with core strategies. These include the acquisition of Cardinal Specialty Pharmacy Business and an agreement with Omnicare to divest its long-term care pharmacy business in exchange of the latter’s home infusion business. Thereafter, Walgreen decided to sell its PBM business to Catalyst Health (CHSI) for $525 million in cash. By divesting its non-core assets, Walgreen will be able to better focus on its 7,700 drug stores.
We are currently ‘Neutral’ on Walgreen.
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