The risk factor is a new one for Walgreen, but they’re hardly the only company starting to publicly fret. Just this morning, Centene (CNC) issued a similar warning in their 10-Q. Indeed, we count over 30 companies that have issued similar warnings so far this October, compared with fewer than 10 in October 2008.
Now Walgreen’s warning is particularly interesting because in the 10-K, they note that prescriptions account for 65% of their sales and that 95% of those were reimbursed by third parties. So we decided to also take a look atcampaign contributions being made by Walgreen employees — mostly executives — and it’s pretty clear that a number of the key Senators and Congressmen/women in the healthcare debate are recipients. This data is actually donations made by Walgreen Co PAC, which is where the majority of company employees who contribute to campaigns seem to be sending their money.