Walgreen's announcement that it was expanding to Europe with a $6.7 billion, two-part purchase of Alliance Boots prompted a bit of scorn on Wall Street Tuesday, but aside from the opinions on the deal terms, it could have some impact on pharmaceutical sales.
Based in Deerfield, Ill., Walgreen is the largest drug store chain in the United States and it hopes the purchase of Alliance Boots will help it sell more drugs and shampoo and anything else in Europe and beyond.
Walgreen figures being larger and more worldly will give it more power to negotiate with suppliers, including drug companies. As insurers, private or governmental, demand lower prices, middlemen like drug stores are looking for different ways to get or keep or increase their share of the market.
The link to the Walgreen's press release is here.
The link to the Bloomberg story is here.
The link to a Wall Street Journal story is here.
The link to the New York Times story is here.
The link to the Guardian story is here.