Walgreens fortifies its specialty pharmacy arm

Drug store chain announces deal with BioScrip

DEERFIELD, Ill. — Walgreens on Thursday inserted another piece into its comprehensive healthcare offering, just in time for the PBM selling season, with the acquisition of BioScrip's community specialty pharmacies.

Walgreens and BioScrip announced that they have entered into a definitive agreement under which Walgreens will acquire certain assets of BioScrip's community specialty pharmacies and centralized specialty and mail-service pharmacy businesses for a total deal value of approximately $225 million.

“Together, BioScrip's clinically focused community specialty pharmacies and access to additional limited distribution drug therapies, and Walgreens existing nationwide network of retail and health system pharmacies create a strong network of support for our core drug store business to provide specialty pharmacy solutions to our patients,” stated Greg Wasson, Walgreens president and CEO. “Many of our patients will benefit from expanded access to new and limited distribution drugs for chronic conditions, such as HIV, cancer and organ transplant. This acquisition also significantly expands our nationwide reach to an additional half-million patients with chronic and complex health conditions who have strong clinical relationships with their current BioScrip pharmacy.”

BioScrip’s community specialty pharmacy business is a national network with 30 locations in 16 states across the United States and the District of Columbia. In addition to acquiring those locations, Walgreens will acquire certain assets of BioScrip's centralized specialty pharmacy business and traditional mail-service pharmacy business that dispenses prescriptions for Drugstore.com, which was acquired by Walgreens in June 2011, among others.

Walgreens currently anticipates the transaction will not have a material impact on its earnings per share in fiscal year 2012, and expects it to be modestly accretive in fiscal year 2013.

Completion of the transaction is subject to customary conditions, including satisfaction of regulatory requirements and other closing conditions. Walgreens plans to fund the acquisition with existing cash and anticipates the transaction will close by late April 2012. The transaction was unanimously approved by both companies’ boards of directors.


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