Tuesday, September 23, 2014
Inquirer Daily News

Walgreen's European expansion prompts skepticism, but.....

U.S. drugstore chain says it will spend $6.7 billion to buy stake in European chain Alliance Boots, hoping to profit from larger size.

Walgreen's European expansion prompts skepticism, but.....

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.

 

 

David Sell
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Inquirer.com. Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com.

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