In the most recent strategic maneuver to boost its pharmacy
), the largest retail pharmacy chain in the U.S., extended its
agreement as a network pharmacy provider in the
) pharmacy benefit management (PBM) retail network. The deal
appears to be an attractive play to gain more clout in a tough
The deal should improve customer traffic at Walgreens stores
which failed to improve in recent months. It should also improve
volumes at the company's comparable stores on the back of
While the financial details and terms of the agreement remain
undisclosed, the extended multi-year agreement is well aligned
with Walgreens' objectives. The company's multi-year agreement
will support cost-effective pricing and fair reimbursement for
services and value for patients and payers.
Apart from CVS Caremark, Walgreens also has a multi-year
agreement with the largest PBM in the U.S.
). After few months of fallout in 2012, Walgreens and Express
Scripts announced a new multi-year agreement, effective Sep 15,
2013. Walgreens suffered a prolonged period of lean sales during
the impasse, reflecting the importance of its inclusion in the
pharmacy provider network of Express Scripts.
There has been a lot of commotion surrounding the stock as
Walgreens has been on a deal-making spree of late. In March, the
company inked a long-term deal with
), effective Sep 1, 2013, in order to improve its global
pharmaceutical supply chain for branded as well as generic drugs.
AmerisourceBergen will replace Walgreens' current pharmaceutical
distributor Cardinal Health as the existing contract is set to
expire in Aug 2013.
Last year, Walgreens resolved its seven-month impasse with
Express Scripts and extended its global reach with a strategic
deal with Alliance Boots.
AMERISOURCEBRGN (ABC): Free Stock Analysis
CVS CAREMARK CP (CVS): Free Stock Analysis
EXPRESS SCRIPTS (ESRX): Free Stock Analysis
WALGREEN CO (WAG): Free Stock Analysis Report
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Evidently, Walgreens is leaving no stone unturned to post
relatively strong sales. We believe that the deal should lend
some positive momentum to the stock, which carries a Zacks Rank