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Walgreens, Prime Form Central Specialty & Mail Service Company
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World’s first pharmacy-led, health and wellbeing enterprise Walgreens Boots Alliance (WBA - Free Report) , in a partnership with pharmacy benefit manager (PBM) Prime Therapeutics LLC, recently formed a combined central specialty pharmacy and mail services company. The new company, AllianceRx Walgreens Prime, based in Orlando, FL, will start its operations immediately.
The financial terms of the deal, which was inked last August, remain undisclosed. Walgreen believes the consolidation to be strategically fit as AllianceRx will combine the benefits of Walgreens pharmacy network along with the pharmacy benefit management expertise of Prime. Full integration is expected to be completed by early 2018.
The consolidated company is expected to deliver better care, patient outcomes and exceptional care and service to patients and payers. AllianceRx will manage several consolidated mail services and central specialty pharmacy operations. The AllianceRx Walgreens Prime brand will be rolled out in the marketplace over the coming months.
Central specialty pharmacy and mail service customers of Walgreens and Prime will be transitioned into AllianceRx. According to Walgreens, these customers can benefit from features such as omni-channel tools and resources to help improve medication adherence, 24/7 pharmacy support and pickup of specialty medicines at Walgreens retail locations.
Walgreens will continue to operate its more than 230 specialty pharmacies throughout the U.S., in addition to its retail pharmacies. AllianceRx will be consolidated by the mother company Walgreens Boots Alliance in its financial statements.
In this regard, we note that, Walgreens Boots is currently focusing on expansion through strategic partnership in the field of retail as well as PBM. Recently, the company collaborated with WPP to operate and develop multiple marketing and communications channels for its retail and wholesale businesses as well as its health and beauty product brands.
The company also inked a multi-year partnership agreement with global express delivery services provider, FedEx Corporation. These alliances are expected to prove beneficial for the company’s top-line performance.
The latest partnership with PBM giant, Prime Therapeutics is also expected to aid the company’s goal of creating a strong footprint in the pharmacy benefit niche. AllianceRx is expected to hold ground against competitors like Express Script and CVS Health.
Over the last one month, Walgreens Boots has been trading a bit above the Zacks classified Retail - Pharmacies and Drug Stores industry on Rite Aid deal related uncertainty. Notably, FTC imposed certain regulatory issues resulting in a delay in the completion of the Rite Aid acquisition. The stock has so far lost 3.5%, slightly narrower than the 3.7% decline of the broader industry.
Zacks Rank and Key Picks
Walgreens Boots currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Medical space include Inogen, Inc. (INGN - Free Report) , Orasure Technologies, Inc. (OSUR - Free Report) and ZELTIQ Aesthetics, Inc. . While Inogen sports a Zacks Rank #1 (Strong Buy), Orasure and ZELTIQ Aesthetics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inogen gained 28.05% in the last one year compared with the S&P 500’s gain of 14.3%. The company reported a stellar four-quarter positive average earnings surprise of over 49.08%.
Orasure surged 76.8% in the last one year compared with the S&P 500’s gain. Its four-quarter average earnings surprise was a positive 123.5%.
ZELTIQ Aesthetics gained over 100% in the past one year, better than the S&P 500 mark. It posted a trailing four-quarter positive average earnings surprise of 12.03%.
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Walgreens, Prime Form Central Specialty & Mail Service Company
World’s first pharmacy-led, health and wellbeing enterprise Walgreens Boots Alliance (WBA - Free Report) , in a partnership with pharmacy benefit manager (PBM) Prime Therapeutics LLC, recently formed a combined central specialty pharmacy and mail services company. The new company, AllianceRx Walgreens Prime, based in Orlando, FL, will start its operations immediately.
The financial terms of the deal, which was inked last August, remain undisclosed. Walgreen believes the consolidation to be strategically fit as AllianceRx will combine the benefits of Walgreens pharmacy network along with the pharmacy benefit management expertise of Prime. Full integration is expected to be completed by early 2018.
The consolidated company is expected to deliver better care, patient outcomes and exceptional care and service to patients and payers. AllianceRx will manage several consolidated mail services and central specialty pharmacy operations. The AllianceRx Walgreens Prime brand will be rolled out in the marketplace over the coming months.
Central specialty pharmacy and mail service customers of Walgreens and Prime will be transitioned into AllianceRx. According to Walgreens, these customers can benefit from features such as omni-channel tools and resources to help improve medication adherence, 24/7 pharmacy support and pickup of specialty medicines at Walgreens retail locations.
Walgreens will continue to operate its more than 230 specialty pharmacies throughout the U.S., in addition to its retail pharmacies. AllianceRx will be consolidated by the mother company Walgreens Boots Alliance in its financial statements.
In this regard, we note that, Walgreens Boots is currently focusing on expansion through strategic partnership in the field of retail as well as PBM. Recently, the company collaborated with WPP to operate and develop multiple marketing and communications channels for its retail and wholesale businesses as well as its health and beauty product brands.
The company also inked a multi-year partnership agreement with global express delivery services provider, FedEx Corporation. These alliances are expected to prove beneficial for the company’s top-line performance.
The latest partnership with PBM giant, Prime Therapeutics is also expected to aid the company’s goal of creating a strong footprint in the pharmacy benefit niche. AllianceRx is expected to hold ground against competitors like Express Script and CVS Health.
Over the last one month, Walgreens Boots has been trading a bit above the Zacks classified Retail - Pharmacies and Drug Stores industry on Rite Aid deal related uncertainty. Notably, FTC imposed certain regulatory issues resulting in a delay in the completion of the Rite Aid acquisition. The stock has so far lost 3.5%, slightly narrower than the 3.7% decline of the broader industry.
Zacks Rank and Key Picks
Walgreens Boots currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Medical space include Inogen, Inc. (INGN - Free Report) , Orasure Technologies, Inc. (OSUR - Free Report) and ZELTIQ Aesthetics, Inc. . While Inogen sports a Zacks Rank #1 (Strong Buy), Orasure and ZELTIQ Aesthetics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inogen gained 28.05% in the last one year compared with the S&P 500’s gain of 14.3%. The company reported a stellar four-quarter positive average earnings surprise of over 49.08%.
Orasure surged 76.8% in the last one year compared with the S&P 500’s gain. Its four-quarter average earnings surprise was a positive 123.5%.
ZELTIQ Aesthetics gained over 100% in the past one year, better than the S&P 500 mark. It posted a trailing four-quarter positive average earnings surprise of 12.03%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>