Why Walgreens wants to buy AmerisourceBergen
Walgreens’ potential deal for AmerisourceBergen will help the drug chain better compete with CVS and pharmacy benefit manager Express Scripts Holding Co.
On Tuesday The Wall Street Journal reported that Walgreens Boots Alliance is in early talks to buy out AmerisourceBergen. Walgreens already owns a 26% stake in the company. AmerisourceBergen and Walgreens have a 10-year deal, struck in 2013, that allows the drug distributor to buy drugs for Walgreens.
An AmerisourceBergen acquisition would give Walgreens a bigger presence in the specialty pharmacy space and boost its cash flow.
AmerisourceBergen is a global network of companies that works across the health care supply chain to deliver drugs to pharmacies and patients. It acts as a distributor, logistics manager, and liaison between drug developers and legislators. It is one of the biggest drug distributors in the U.S.
Walgreens' move comes after CVS announced a deal to buy the health insurer Aetna in December and Amazon announced in January that it would partner with JPMorgan Chase and Berkshire Hathaway to create a new, cheaper health care alternative.