Cardinal Health will be replaced when their contract expires. Amerisource is global and thus with adding Alliance Boots to the distribution, there’s a lot more negotiating power with purchasing. The deal will add $28 billion in revenue to Amerisource. Meanwhile at the shop, Walgreens is close to making over a billion a year just selling your data. See how this all grows and makes profits for the big companies? We won’t notice much as far as what we pay though as new distribution patterns are set up and the best for the consumer out of this deal is the availability of a few more drugs. Walgreens will be able to take stock as well and own up to 23% of AmerisourceBergen.
Independent pharmacies will probably need to worry again as the company distributes to most of them and what prices will they pay compared to Walgreens and Boots? For Cardinal, Walgreens is their second largest account and that will hurt a bit. BD
Walgreen, the largest U.S. drugstore chain, will use AmerisourceBergen's network to start daily distribution of drugs. Previously Walgreen used its own employees, transportation and warehouses to ship products on a daily basis and used an outside company like AmerisourceBergen weekly.
Walgreen and Alliance Boots have the right to buy up to 23 percent of AmerisourceBergen, starting with a 7 percent stake on the open market, now valued at about $800 million. Walgreen and Alliance Boots also received warrants exercisable for 16 percent equity in Amerisource. The first tranche, an 8 percent stake, can be exercised at a strike price of $51.50 in March of 2016.