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news.Amerisource Bergen has entered into a long-term partnership with Walgreens and Alliance Boots, a move that will streamline the distribution of pharmaceuticals to Walgreens outlets and leverage global supply chain efficiencies while improving patient access to affordable pharmaceuticals.
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AmerisourceBergen’s new expanded partnership with Walgreens and Alliance Boots comprises a ten-year comprehensive primary pharmaceutical distribution contract with Walgreens; access to generic drugs and related pharmaceutical products through the Walgreens Boots Alliance Development joint venture; and opportunities to accelerate the company’s efforts to grow its specialty and manufacturer services businesses across the country and world.
As part of this new partnership, Walgreens and Alliance Boots have been given rights to buy an equity position in AmerisourceBergen.
The new agreements are expected to be accretive to AmerisourceBergen’s earnings. AmerisourceBergen has serviced Walgreens’ specialty business for several years, and in fiscal 2014, the new relationship is expected to contribute an incremental $28bn in revenues and approximately 20 cents in earnings per share.
AmerisourceBergen president and CEO Steven H Collis said that as the company recognises the imperatives of health reform not only in the US but also globally, it has entered into an opportunity to unlock value in the pharmaceutical supply chain by collaborating to leverage all of its proven strengths.
"This new relationship will significantly strengthen and grow our core business and increase our ability to deliver innovative solutions to our customers, and long-term benefits to all of our stakeholders. Importantly, these agreements not only expand our U.S. business, but also provide opportunities to meaningfully grow our specialty and manufacturer services businesses internationally," Collis added.