New Drug War: Walgreen's and CVS Battle over Benefits

The "bitter pill" of pharmacy benefit plans has reared its ugly head once more with the announcement that CVSCaremark had removed all of Walgreens 7,225 drugstores from its pharmacy benefits network. It a heated debate filled with accusations about the rival companies' business practices.

This move was yet another display of these types of deals unraveling, Donald Drapkin, Chairman of Casablanca Capital, told CNBC Wednesday.

Pharmacy benefit deals "just don't work," Drapkin said, and have been flawed for years—take the pharmaceutical companiesMedco and Merck.

For more of Donald Drapkin's comments, watch video from 'The Strategy Session" here.

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"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.