Express Scripts moves on after Walgreen split

Express Scripts Inc. says it is doing fine after breaking up with pharmacy operator Walgreen Co., but it won’t rule out getting back together with the largest U.S. drugstore chain.

Express Scripts, a pharmacy benefits manager based in St. Louis, paid Walgreen to fill prescriptions, but their contracted ended in December after the companies failed to agree on terms for a new deal.

Deerfield-based Walgreen had managed about 20 percent of Express Scripts’ prescription volume before the contract ended. Express Scripts said Thursday it is keeping the vast majority of that business, and its clients are not upset with the split, which means many have to go to a new drugstore for prescriptions.

“At the end of the day ... Nexium is Nexium, Lipitor is Lipitor, drugs are drugs, and it shouldn’t matter that much who’s counting to 30,” Express Scripts Chairman and CEO George Paz told analysts during a conference call with analysts.

Pharmacy benefits managers, or PBMs, run prescription drug plans and use large purchasing power to negotiate lower drug prices. They make their money by reducing costs for health plan sponsors and members. Express Scripts clients include employers, health plans, government agencies and unions.

Even though Paz said the move away from Walgreen has gone “without a hitch,” the PBM remains open to more negotiations with the drugstore chain. But the CEO said any deal has to be on terms that are best for his company.

Walgreen spokesman Michael Polzin said his company is focused on building its business without Express Scripts. “Since Express Scripts rejected our best offer in December, we have moved on,” he said.

Shares of Express Scripts climbed 2 percent, or $1.08, to $52.71 in Thursday afternoon trading, while Walgreen stock fell 21 cents to $34.08 and broader trading indexes rose slightly.