Walgreens earnings and partnership

Walgreens unveils blockbuster partnership … just not with Blockbuster.

With better than expected earnings in its second quarter, Walgreens has announced a deeper partnership with AmerisourceBergen that includes a potential board seat, according to Chain Store Age.

Walgreens earnings and partnership

From the article:

The deal will substantially alter how Walgreens sources prescription products. Currently, the company relies on AmerisourceBergen for specialty items, but the new deal is a 10 year comprehensive arrangement that for branded and generic pharmaceutical products. The portion of the agreement relating to branded products Walgreens has historically sourced from distributors and suppliers takes effect September 1. Over time, beginning in calendar year 2014, AmersourceBergen will increasingly provide generic pharmaceutical products that Walgreens historically has self-distributed.

It is believed the new relationship will enable Walgreens, Alliance Boots and AmerisourceBergen to benefit from greater scale and global opportunities and work together on programs to improve service levels and efficiencies, while reducing costs and increasing patient access to pharmaceuticals. The companies contend the arrangement will help address global health care challenges by making it easier for manufacturers to bring products to market; increasing accessibility to the benefits of global sourcing and best practices for community pharmacies; and providing patients with better access to health care. The collaboration is also believed to generate opportunities to attract partners in new markets and prospects in existing markets around the globe.