Wow, I didn't see this one coming!According to a story that just hit the Dow Jones newswires, Wal-Mart Stores (WMT) will reportedly be buying Walgreens (WAG)!
Folks, this is a major move and will completely reshape the pharmacy industry. I conservatively estimate that the combined buying power of the two companies will exceed even CVS Caremark.
This also puts a new spin on drug wholesaler contracts. Cardinal Health (CAH) supplies Walgreens, while McKesson (MCK) supplies Wal-Mart. Look for another race-to-the-bottom margin slugfest when this contract comes up for re-bid!
From what I understand, Wal-Mart plans to rebrand all Walgreens retail pharmacies as "Wal*Wal" stores.
So far, there's no comment on this name from Pennsylvania-based convenience store operator WaWa. However, one of my lawyer friends works at Disney and told me that Disney may seek to block the deal because of possible consumer confusion with Wall-E.
I'll be following this story closely and will post more as details are released.
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Hey, did anybody else notice what today is? Oh yeah, it's April Fools' Day. Enjoy!
Nice! Definite points for creativity.
ReplyDeletePriceless.
ReplyDeleteAdam - You had be there for a minute. Good one!
ReplyDeleteYou had me going, too! Well done!
ReplyDeleteAdam - You better watch out here. The way the Internet wires work these days - I could see this getting picked up and reported as serious news. You never know what you might start.
ReplyDeleteAny truth to the rumor you're on CNBC at noon?
Brian -
ReplyDeleteYes, that one happens to be true. Tune in later today and see me finish what Jon Stewart started.
Adam
Well Done! Good thing I read to the bottom before I e-mailed it to the whole company!
ReplyDeleteFunny Man you are…
ReplyDeleteFunny in an ironic way. With consolidation happening all around, the fact that it COULD happen is sobering. This was a really good one and I am sure others are already revising their business models - until they get to the end.
ReplyDeleteWhat's next?
ReplyDeleteTargenta is acquired by GSK and the new company is called 'TSK!'
Amgen merges with Genentech to become 'Amgengenen'
Schering-Plough joining Merck should become 'Schmerck'. Wyeth should have joined Merck and become "Wy-Me?'
A merger between Biogen and Abbott leads to 'Babbott', unless Roche hops in and the merger instead becomes 'Rabbott'
When Pfizer buys Takeda, will the result be 'Tazer' (a real shock to the industry?)
You are soooo funny! Very cute.
ReplyDeleteGood One...
ReplyDeleteI thought it was true for a minute... That would truly make WMT unstoppable in this industry wouldn't it. It would also help them on their small store footprint expansion into urban areas. Wow. Good one.
touche.
ReplyDeleteReading the subject line on the blackberry while driving gave me a heart attack.
ReplyDeleteSorry, a defilibrator is not included with your drug channels subscription plan.
ReplyDeleteOf course, reading your blackberry while driving may also not be a good idea...
Adam,
ReplyDeleteDon't the markets have enough roiling elements?
Good one....they deserve it..
Love the logo!
ReplyDeleteWell, it worked on me. I fell for it until I saw the “Wal Wal” part. Good for you!
ReplyDelete..you got me for a minute but then, i didn't think it could ever happen.
ReplyDeleteugh, i had to do a google after reading the title.your post was the only hit that came up. then i finished reading the article. silly me!
ReplyDelete