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"After speaking with Express Scripts, we don't believe that Express Scripts budged in negotiations as it has seen limited disruption since ending its relationship with Walgreen," said Citi Investment Research analyst Deborah Weinswing. She said the deal is likely to hurt Walgreen's profit margins. She added that it's not clear how many customers Walgreen will regain. CVS Caremark said it expects to keep at least half the business it gained from Walgreen starting in late 2011 when the defections from Walgreen started ahead of its split with Express Scripts. CVS also said it gained about 3 cents per share in income from the Walgreen-Express Scripts dispute in the first quarter and expects another 3 to 4 cents per share in the second quarter. The company said Friday it expects a smaller gain of 5 cents per share spread over the last two quarters of 2012. Looking for ways to gain new business, Walgreen said in June that it had agreed to pay $6.7 billion to buy a stake in European health and beauty retailer Alliance Boots. In early July it agreed to buy Stephen L. LaFrance Holdings, which runs 144 drugstores focused in the mid-South, for $438 million. Before the companies' contract lapsed, Express Scripts filed a lawsuit against Walgreen, accusing the drugstore chain of trying to lure away its customers. The lawsuit alleged that Walgreen told Express Scripts plan members, and especially Medicare Part D beneficiaries, that they would not be able to fill their prescriptions at Walgreen pharmacies unless they left Express Scripts and switched to a new pharmacy benefits management plan.
[Associated
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