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US: Walgreens takes another chunk out of pharma co

By  |  March 21, 2013

As the US Supreme Court mulls the so-called pay-for-delay schemes of the pharmaceutical industry, major drugstore retail chain Walgreen Co. has reportedly acquired a majority ownership stake of a pharmaceutical wholesaler, giving Walgreens a major upper-hand when negotiating drug prices. Walgreens currently has a supply agreement with AmerisourceBergen Corp. in a 10-year deal. Now, Walgreens will hold a majority stake in the company, while European retailer Alliance Boots will hold a minority stake. The contract allows Walgreens and Boots to buy up to 7 percent of AmerisouceBergen’s shares as well as warrants to pursue another 16 percent. The deal is just a further expansion of Walgreen’s $7 billion investment in global expansion; if Walgreens pursues its ability to purchase another 16 percent in 2015, the chain will have fully acquired AmerisourceBergen. The pharmaceutical wholesaler supplies brand name and generic drugs to Walgreens.

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