WRKO>Audio & Video on Demand>>Paul LaMonica (CNNBusiness, Walgreens)

Paul LaMonica (CNNBusiness, Walgreens)

Apr 5, 2019|

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Cole Monica from CNN business joins us now here talk a little bit about. Walgreens boots alliance Paul thanks for joining us. You as having known critic battered. Yeah Walgreens with a little bit of a tough week here in the stock dropping for 63 bucks a share down to 55 so about a 1213%. Loss for them. CVS kind of dragged down on this news as well what what was the big thing that they report in what what's the problem that they're going through. Yeah it's just you know what weak outlook further arrests this year in earnings and felt they had been you know I think that the company that. You are a lot. Channel right now that the actor in this or the actual receive gas. Over generic drug prices in you know declining reimbursement rate in that. Hurting all. Those companies both media and out Walgreens but on that a lot of competition queuing in the back and from. Wal-Mart and Amazon but also lot you know many other retailers that you know. Yeah when you go into drug story and trying to cap it all by something that. You know description I'd. Odds aren't that prices are higher than if he would something like grocery store Costco work. A dollar story I think that aren't catch up. So as the week and having in debate here how how much of a company like Walgreens how much they're sales is based on kind of front of the store items you know walking in and buying you know deodorant or shampoo were something like that. Yet it's it's still by and large you know the the backhand the part that try. But of course they're all. You know if you go into a drugstore there are all being renovated in the past couple years they really are trying to disperse a the front and get people to find more from that part of the story that I think that there are happening now you'll a little bit of limited access. Obviously Walgreens also has the added problem BUSUK. Hybrid beat back the a client partner in the you know the food stores in the UK about you know really been struggling in practice. In terms of trying to compete with the Amazon's of the world and so forth. I know one of the things that CBS CBS announced last year they've been expanding is. Next day prescription delivery is Walgreens trying to do anything similar at this point. Yeah they are trying to deduce something similar to yes just announced yesterday that there expanding that program not making it just came date delivered her prescriptions in. In many cases I think bull put they companies have you know done a good job of recognizing. Want but you know obviously you know Amazon has been extremely aggressive you know the health act acquisition. Yeah that was a wake up call for the industry. In in terms of trying to remedy the issues that Walgreens is facing is. Is this something I guess that they can even fix on their own or their bigger economic forces at work right now. That you know might cause investors to have to take a harder look at this sector for you know a number of years just in terms of teams that everyone whether. You know Democrat Republican or even not involved in politics is talking about drug price now is they're just too much of a head wind in this space. I think that is definitely going to be a challenge for both companies especially with a 20/20 election you're probably can you know upbeat on the you know the big pharma companies to be. One constant. Between you know president tropical apple want that being the democratic candidate much like it was. Between trumpet or 2016. I think that one you know he if Richard factor to walk yet itching its. Will Walgreens even though they're now cost cutting mode trying to make an acquisition to. Really bolster our other parts healthcare is that they might actually and Europe mean if you look at it yet. Obviously they've gone in and they scooped up Aetna. But now they have that help that your side you know they're war want upshot of all green if it is right now. I think a lot of the best going to be worried about they don't want to offer paper deal but I think some investors might feel that while we eat it do you. And insurance dealers of the similar. In order to really catch up. Are good Paul what you actually have one more question for you I know you're here in giants fan typically when it comes to football teams. Did you see what the jets did what their new uniforms yesterday. Yeah I did. It's. Eight it's not great now I'll I prefer blue or green but it that way and you know. At that the jets got to be something to try and that are now. I wasn't gonna save Petit took the words right out my mouth so thanks Paul have a great weekend we'll talk to him at our army. As well this it's a problem for all of us Paula Monica from CNN business talking about Walgreens boots alliance.