Express Scripts (NASDAQ:ESRX) filed suit against Walgreen (NYSE:WAG) alleging the pharmacy is telling Express Scripts plan members they will not be able to fill their prescriptions at Walgreen pharmacies unless they leave their Express Scripts plan. Walgreens said the action amounted to a breach of contract that the two companies had signed earlier.
“Walgreens has crossed a line and is not negotiating in good faith,” Express Scripts said in an emailed statement to MarketWatch. “We will not let this stand.” The move could benefit other pharmacies looking to poach Express Scripts members including Rite Aid (NYSE:RAD), CVS (NYSE:CVS), Target (NYSE:TGT), and Walmart (NYSE:WMT).
Express Scripts (NASDAQ:ESRX) shares closed at $41.50, down over 3%. The company has been on the 52-week low list lately. The company trades at a P/E ratio of about 17 which is higher than its industry. The company also trades at a sales multiple of 0.5 which is in line with its industry. On the technical front, shares trade well below their declining 50 and 200 day moving averages. The MACD shows a bearish crossover while RSI is pointing down and entering oversold territory at 30.