Barron’s Take On The Remedy Adopted By CVS And Walgreen (CVS, WAG)

Walgreen WAG and the CVS Caremark Corporation CVS, two pharmacy store giants, recently announced a multi-year, mutual agreement, settling their June 7 quarrel and allowing the former to participate in CVS’s pharmacy benefit management. Teresa Rivas at Barron’s expressed that this step promises to benefit investors. She felt that this would clear the over-weighted Walgreen stock of any uncertainties. Rivas further stated that the common belief is that CVS would need to flatter Walgreen with prescription pricing concessions to benefit, but personally rebuffed such claims. Growth of same sale stores of CVS outpaced Walgreen's during the spat, as noted by The Wall Street Journal.