Walgreens Boots Alliance owns a little more than one-quarter of drug distribution behemoth AmerisourceBergen, but a Wall Street Journal article references sources that the world’s largest drugstore retailer by shop number is in talks to acquire the rest.
AmerisourceBergen is one of the largest drug distributors in the U.S. and is based in suburban Philadelphia. If Walgreens were to acquire the business, it would put the retailer in control of drug distribution to other retail pharmacies. AmerisourceBergen is also responsible for delivering costly oncology and other specialty drugs to physician practices and cancer centers. About 18 percent of the company’s sales derive from its wholesale pharmaceutical business, according to the article.
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Walgreens is nearing completion of its deal to acquire Rite Aid stores for $4.4 billion. If the AmerisourceBergen deal happens, it would be huge. AmerisourceBergen has a market cap of $19.6 billion and Walgreens’ market cap is $67.8 billion, according to data from Yahoo Finance.
Walgreens interest in AmerisourceBergen could also be the latest example of retail pharmacies trying to protect themselves against Amazon amidst concerns that the online retail giant is planning a push into pharmacy services. CVS Health is acquiring insurer Aetna — a deal that’s under review. If Walgreens does acquire AmerisourceBergen, it would mark another example of the consolidation side effect we’re seeing in healthcare with fewer companies controlling access to supply.
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