Walgreens Forms Alliance With Prime Therapeutics
30 August 2016 - 1:40AM
Dow Jones News
Walgreens Boots Alliance Inc. said Monday it has formed a
long-term strategic alliance with pharmacy-benefits manager Prime
Therapeutics as it seeks to capture a greater share of the
prescription-drug market.
Financial terms weren't disclosed for the agreement, which makes
Walgreens Boots the preferred pharmacy for Prime's members and
combines the companies' central specialty pharmacy and mail-service
businesses. The partnership also includes greater data-sharing
between the two companies.
Prime, one of the U.S. largest pharmacy-benefits managers, is
owned by 14 leading Blue Cross and Blue Shield health plans and has
22 million members.
Walgreens Boots would become the core participant in Prime's
national preferred pharmacy network at the start of next year under
the deal. As a result, Prime members could see lower prices for
some prescriptions filled at Walgreens.
The combined central specialty and mail services company will
have its own board and executive team, which will be selected by
Walgreens Boots and Prime.
Walgreens Boots has been overhauling its business since the 2014
merger of the U.S. drugstore chain Walgreen with the European
retailer and drug wholesalers Alliance Boots. With reimbursement
rates for prescription drugs under pressure, the company has been
cutting costs and forging new ties with drugmakers and health
insurers.
Walgreens in March formed a partnership with UnitedHealth Group
Inc.'s OptumRx, which manages prescription drug insurance for more
than 66 million Americans.
The company, the nation's largest drugstore chain, also is in
the midst of buying smaller drugstore chain Rite Aid Corp. for
about $9.4 billion as it takes part in a rapidly consolidating U.S.
health-care sector.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
August 29, 2016 11:25 ET (15:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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