AmerisourceBergen, Walgreen and Alliance Boots in partnership
New relationship with Walgreens and Alliance Boots includes 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 domestically and internationally.
Walgreens and Alliance Boots together have been granted rights to purchase an equity position in AmerisourceBergen, which is described in greater detail below.
The new agreements are expected to be meaningfully accretive to AmerisourceBergen's earnings and strengthen its confidence in delivering solid and sustainable long-term EPS growth. AmerisourceBergen has serviced Walgreens' specialty business for several years, and in fiscal 2014, the new relationship is expected to contribute an incremental $28 billion in revenues and approximately 20 cents in earnings per share.
"AmerisourceBergen is very excited to be joining in this unique global relationship with two of the undisputed leaders in healthcare. Importantly, these agreements not only expand our U.S. business, but also provide opportunities to meaningfully grow our specialty and manufacturer services businesses internationally," said Steven H. Collis, president and chief executive officer of AmerisourceBergen.
"Today's announcement marks another step forward in establishing an unprecedented and efficient global pharmacy-led, health and wellbeing network, and achieving our vision of becoming the first choice in health and daily living for everyone in America and beyond," said Gregory Wasson, president and chief executive officer of Walgreens.
"This agreement with AmerisourceBergen, which we consider to be the best-positioned pharmaceutical wholesaler in North America, is a promising development for Walgreens and Alliance Boots following the formation of our strategic partnership last year. Together we will bring tailored solutions to business partners, including manufacturers and pharmacists, as well as to patients and consumers," said Stefano Pessina, executive chairman of Alliance Boots. ■