Episode Description
This conversation explores the rise and fall of Walgreens, focusing on its healthcare strategy and the challenges it faced in the retail pharmacy market. The discussion highlights key events, including the merger with Alliance Boots, the impact of online competition, and the company's attempts to diversify into healthcare delivery. It also examines the lessons learned from Walgreens' struggles, particularly the importance of having a pharmacy benefit manager (PBM) and the difficulties of transforming a legacy business in a complex regulatory environment.
Key Takeaways
1. Walgreens was once a stable and growing retail pharmacy.
2. The merger with Alliance Boots added complexity and debt.
3. Online competition from Amazon pressured traditional pharmacies.
4. Walgreens sold its own PBM in 2011, a decision that haunts them.
5. The company attempted to diversify into healthcare delivery.
6. Walgreens invested heavily in VillageMD for primary care.
7. The execution of their healthcare strategy was challenging and costly.
8. Walgreens faced significant losses and store closures in recent years.
9. Legal challenges, including opioid prescriptions, compounded their issues.
The full transcript of our conversation is also available to read. Show the Transcript.
About Our Host
Robin Brand Vice President Industry Insights
This conversation explores the rise and fall of Walgreens, focusing on its healthcare strategy and the challenges it faced in the retail pharmacy market.