Rite Aid Corp. reported a narrower third-quarter loss on Thursday and predicted a smaller annual loss because of better sales and decreased charges. Here President and CEO John Standley addresses a contract dispute between drugstore competitor Walgreen Co. and pharmacy benefits manager Express Scripts Inc., which could send some Express Scripts clients to Rite Aid's stores instead of Walgreen's.
Question: "You mentioned that your guidance assumes no benefit from the .... Walgreen-Express Scripts dispute. What are guys seeing in terms of customers, whether they're shifting accounts to you or coming — are you seeing more from that?"
Response: "I think the short answer is it's a little bit hard to get a beat on. We actually have a lot more clarity when somebody transfers out versus when they transfer in. So it's a little bit hard to get a read on. Also, our Express Scripts business this year includes a lot more managed Medicaid, which also makes a little bit hard to measure. But overall, script count is positive and showing some growth. So it could be a little bit in the numbers at this point."