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Express Scripts Strives to Make Prescription Drugs Affordable and Accessible to American Families
Date:6/21/2011

ST. LOUIS, June 21, 2011 /PRNewswire/ -- Express Scripts, Inc. (NASDAQ: ESRX) said today it is open to continued negotiations with Walgreens to make prescription drugs affordable and accessible for American families.  

(Logo:  http://photos.prnewswire.com/prnh/20080827/EXPRESSSCRIPTSLOGO

"In these challenging economic times, it is critical that we all work together to keep medicines affordable and accessible," said Express Scripts' chairman and CEO George Paz.  "It is shocking to us that Walgreens would back away from the table with six months to go in the current agreement, especially considering that negotiations are part of the normal course of business."

Walgreens made a series of assertions earlier today. Here is the Express Scripts perspective:

Market Conditions Require Competitive Rates

  • Walgreens' current rates are not competitive with its pharmacy peers. We are negotiating for Walgreens to provide competitive market rates.  Over the next three years, the costs of non-specialty branded medications are projected to increase approximately 10 percent per year (more than 30 percent over three years), the costs of branded specialty medications are projected to increase more than 14 percent per year (nearly 50 percent over three years), and more than $60 billion worth of branded medications will lose patent protection, opening the door to more affordable generic alternatives. Without Walgreens providing reasonable adjustments to its rates, our clients and patients will bear the financial burden of branded price inflation, while not receiving the full economic benefit of increased generic utilization. Under Walgreens' current proposal, the added cost burden to our clients would result directly in profits to Walgr
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SOURCE Express Scripts, Inc.
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