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Walgreens Boots Alliance, Inc.

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Walgreens Boots reported better-than-expected third quarter fiscal 2018. Solid pharmacy sales growth encourages us. Moreover, the company has been gaining on account of strategic tie-ups. We are looking forward to Walgreens Boots’ alliance with Express Scripts aiming to expand their existing group purchasing efforts. This apart, the company’s decision to acquire a 40% stake in Sinopharm Guoda in China looks promising. Investors are also encouraged on Walgreens entering into the world’s most coveted index DJIA. However, declining Retail Pharmacy sales was a disappointment. Also, the ongoing generic drug inflation is hurting Walgreens' pharmacy margin. the company's decision to reduce stake in Guangzhou Pharmaceuticals in China is a concern. Walgreens Boots faces tough competition along with currency fluctuations. Over the past three months, the company has been underperforming its industry.

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