US: Walgreens takes another chunk out of pharma co

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.

Full Content: Omaha.com

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