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Walgreens (WAG) and Theranos, Inc. have entered into a long-term partnership, whereby the new lab testing service of the latter will be available throughout the wide network of Walgreens’ pharmacies.

According to the agreement, services from Theranos Wellness Centres will be offered inside Walgreens stores. The first such flagship Theranos Wellness Center is due to be set up at 300 University Ave. in Palo Alto, CA -- the heart of Silicon Valley. Going forward, the companies intend to introduce this service at all Walgreens outlets located across the country.

The deal envisages Theranos' vision of introducing, for the first time, CLIA-certified laboratory services capable of running its tests on micro-samples. The test promises to eliminate the need for intimidating needles or multiple blood vials required in conventional diagnostic methods.

A tiny finger stick or a micro-sample from an intravenous draw will initiate the diagnostic process with greater ease and accuracy. All kinds of samples – blood, urine or fluids – can be taken through this lab testing service, thus catering to different diagnostic needs.

Theranos is keen to change the entire lab testing experience for patients into a more user-friendly and convenient one. Most of Theranos tests are also low priced, being almost 50% of Medicare reimbursement rates or less. Moreover, they are also reimbursed by majority of the insurance carriers, like Medicare and Medicaid.

Theranos' excellence in laboratory infrastructure cannot be questioned as the wholly automated system guarantees minimal human errors with high quality results. Moreover, delivery of test results is promised to physicians within a few hours, which helps the physicians to initiate the treatment process as early as possible. The high-tech solutions of Theranos offer clinicians a new standard of care across all specialties and treatment areas, including oncology, pediatric and geriatric patients, which involve frequent blood draws.

The extensive network of Walgreens retail pharmacy chain will enable Theranos to make their services both accessible and credible for consumers. Physicians will also be benefitted as they would be able to render prompt and accurate treatment decisions.

Walgreens aims to radically transform its community pharmacy facility by providing a full range of high-end services at the right time and at convenient locations. With 8100 neighbourhood pharmacies and still counting, it stands as the perfect choice for Theranos to expand their diagnostic services on a country-wide level.

Currently, WAG carries a Zacks Rank #3 (Hold). Other medical stocks that are worth a look  include Supernus Pharmaceuticals, Inc. (SUPN - Snapshot Report), carrying a Zacks Rank #1 (Strong Buy),  and GNC Holdings Inc. (GNC - Snapshot Report) and Herbalife Ltd. (HLF - Snapshot Report), each of which carries a Zacks Rank #2 (Buy).

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