Tag Archives: Alliance Boots

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Walgreens Stock Deserves a Spot in Your Portfolio

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By Tamara Rutter, The Motley Fool

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Walgreens  stock has been on a roll this year, with shares up more than 29% year-to-date . This is an impressive run for a company that’s still recovering from its breakup and make-up with pharmacy benefits manager Express Scripts . However, the rise of generics, international growth, and the aging population should also play to Walgreens’ favor in the year ahead.

Top dividend stock
In addition to these catalysts, Walgreens is also one of the better dividend stocks to own. Walgreens stock pays an attractive quarterly dividend, and has done so without interruption for more than 80 years. Additionally, the company has earned its title as a dividend aristocrat by increasing its payout for 37 consecutive years. The stock‘s current dividend yield of 2.3% looks even better if you consider that over the last five years Walgreens stock has achieved a compound annual growth rate of nearly 24%.

The company’s long history of payouts helped shareholders remain calm during a turbulent 2012. Most of the upset was related to the fact that Walgreens said goodbye to about $5 billion in annual sales when it lost Express Scripts‘ business. Because the drugstore chain would no longer fill prescriptions for patients in the Express Scripts network, it ultimately forced its customers into the arms of the competition.

Lessons learned
CVS Caremark and Rite Aid benefited the most from Walgreen’s fallout with Express Scripts. This is because at the time, both CVS and Rite Aid still accepted Express Scripts plans. The rival pharmacy retailers launched aggressive advertising campaigns that specifically targeted Walgreens customers whom held Express Scripts insurance .

It took Walgreens and Express Scripts nearly seven months to work out their differences — costing Walgreens billions in lost sales. However, the two companies finally reached a new multiyear agreement during July of last year. Walgreens stock soared more than 10% last year on that news alone.

Around the same time, investors were also busy dissecting the company’s acquisition of Alliance Boots. If you remember, Walgreens agreed to pay $6.7 billion in cash and stock for a 45% stake in the European drugstore chain.

Fast-forward to 2013
Today, Walgreens is proving that its 2012 purchase of Alliance Boots was less of a knee-jerk reaction to its Express Scripts woes, and more of a long-term play for international growth. Together with Boots, Walgreens inked a 10-year deal with pharmaceutical distributor AmerisourceBergen . As part of the agreement, AmerisourceBergen is giving Walgreens and Alliance Boots the option to buy a minority position in the company or as much as 7% of AmerisourceBergen’s outstanding stock. Walgreens and Alliance Boots also received warrants exerciseable for a 16% equity position in AmerisourceBergen .

Both Walgreens stock and shares of AmerisourceBergen climbed higher last month when the partnership was announced. With AmerisourceBergen now handling Walgreen’s branded and generic drug distribution, Walgreens should see increased efficiencies in its global pharmaceutical supply chain. Moreover, this

From: http://www.dailyfinance.com/2013/04/11/walgreens-stock-deserves-a-spot-in-your-portfolio/

Business, Finance, Occupation & Industry

AmerisourceBergen Divests Canadian Pharmaceutical Distribution Business

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By Business Wirevia The Motley Fool

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AmerisourceBergen Divests Canadian Pharmaceutical Distribution Business

VALLEY FORGE, Pa.–(BUSINESS WIRE)– AmerisourceBergen Corporation (NYS: ABC) today announced that it has signed a definitive agreement to sell its Canadian pharmaceutical distribution business, AmerisourceBergen Canada Corporation (ABCC), to Kohl & Frisch Limited, a Canadian-owned national full-line distributor. The transaction is expected to close in the third quarter of fiscal 2013, and is subject to customary closing conditions, including certain regulatory approvals. AmerisourceBergen will retain its Canadian specialty business.

The estimated sale price is expected to be between $80 million and $100 million, of which approximately half will be financed by AmerisourceBergen. As a result of the agreement, the Company expects to record an estimated loss on sale and other impairment charges of between $160 million and $180 million when it reports its quarterly results for the March quarter of fiscal 2013. This estimated loss on sale, in addition to ABCC‘s operating losses, will be reported within discontinued operations. ABCC represented approximately 2 percent of AmerisourceBergen’s total revenues.

Due to the impact of the sale, AmerisourceBergen has revised its financial performance expectations for fiscal year 2013. The Company now expects revenue growth in the range of 8 to 10 percent and it has increased its estimated earnings per share from continuing operations for fiscal 2013 from a range of $2.96 to $3.06 to a range of $3.04 to $3.14. The revised earnings per share range does not include the impact of significant one-time expenses anticipated as a result of the previously disclosed new strategic long-term relationship with Walgreen Co. and Alliance Boots, GmbH, including a LIFO expense due to an anticipated inventory build and recurring non-cash expenses relating to the equity warrants issued in connection with the new relationship. The Company continues to expect free cash flow in the range of $100 million to $200 million, and to repurchase approximately $400 million of common stock in fiscal 2013.


About AmerisourceBergen

AmerisourceBergen is one of the world’s largest pharmaceutical services companies serving the United States, Canada and selected global markets. Servicing both healthcare providers and pharmaceutical manufacturers in the pharmaceutical supply channel, the Company provides drug distribution and related services designed to reduce costs and improve patient outcomes. AmerisourceBergen’s service solutions range from niche premium logistics and pharmaceutical packaging to reimbursement and pharmaceutical consulting services. With over $80 billion in annualized revenue, …read more
Source: FULL ARTICLE at DailyFinance

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3 Health Care Stories You Probably Missed

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By Brandy Betz, The Motley Fool

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This year, health care stocks are leading the S&P 500 for the first time in well over a decade.
It’s a vote of confidence in a landscape that’s changing around the Affordable Care Act. While the more speculative biotech industry gets attention from The Fool

elsewhere

, here’s a look at the top stories from the less-sung parts of health care.

As we begin the last mini-week of the month, the news was as mixed as the Northeast weather. A drug store made a distribution power play. An insurer fell on Medicare nervousness. And a health care information technology company branched out with a new acquisition.

Walgreen  announced that it was signing a 10-year contract with drug distributor AmerisourceBergen , and had an option of buying a 7% stake. That left its former primary distributor Cardinal Health out in the cold, and shares dropped accordingly. The move will increase the drugstore chain’s prices on both branded and generic drugs, which should lead to higher profit margins.

Also coming along for the ride was European chain Alliance Boots, which Walgreen’s partially acquired last year. Combined, the moves will improve Walgreen’s market position and perhaps its bargaining power with pharmacy benefit managers such as Express Scripts .

Turning towards the health plan side of things…

Humana closed the week down almost 4% after a Susquehanna analyst lowered the company’s rating from “Positive” to “Neutral,” citing concerns with potential Medicare Advantage rate cuts. The company’s shares had dropped 10% last month when the Centers for Medicare and Medicaid Services’ announced its proposed rates, which could lead to losses of $11 billion across Advantage providers. Humana is one of the segment leaders, with 2 million Advantage customers. Expect further volatility in health care plans this week since the final rate decision is due next Monday.

And rounding out the week’s review, Cerner Corporation acquired Labotix Automation, which provides automation solutions in clinical testing environments. The details weren’t disclosed. It’s the latest in a string of acquisitions for Cerner, which is diversifying its business as the spending boost from the 2009 stimulus winds down and the ACA kicks in. Cerner finished the week up less than 1%, but this is a stock meant for the long haul.

Do lower costs = profits for your portfolio?
In 2011, a massive shift began. With the first of the baby-boomer generation reaching Medicare age, America’s health care landscape was forever changed. Combine the aging population with the impact of Obamacare, and the need for innovative solutions for skyrocketing health care costs is as clear as ever. Express Scripts is part of that solution, and in this brand new premium …read more
Source: FULL ARTICLE at DailyFinance

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An Easy Way to Zero In on the Growing Large- and Mid-Cap Markets

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By Selena Maranjian, The Motley Fool

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Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some sizable companies to your portfolio, the Guggenheim Russell 1000 Equal Weight ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously. It weights its holdings equally, instead of by market cap, as many indexes do.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Guggenheim ETF‘s expense ratio — its annual fee — is a relatively low 0.42%. The fund is fairly small, too, so if you’re thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.

This ETF is too young to have a sufficient track record to assess. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Why large companies?
Large companies can add some ballast to your collection. Many may not grow as briskly as their smaller counterparts, but to reach their current size, they probably have some strong assets and features. And some can grow quite briskly, too. This ETF focuses on ones that seem undervalued according to some measures, which can boost the overall margin of safety for the basket.

More than a handful of large- and mid-cap companies had solid performances over the past year. Walgreen surged 41%, finally moving on from its now-resolved snit with pharmacy benefits manager Express Scripts. Its pharmacy volume is picking up, and it has invested heavily in international growth, via a purchase of Europe-based Alliance Boots. It has also entered into a promising alliance with U.S. drug wholesaler AmerisourceBergen.

Tyson Foods gained 25%, recently hitting a 52-week high despite margin compression due to rising prices. It also may be affected by Washington’s sequester, which is furloughing USDA meat inspectors, which can slow down business — though Tyson isn’t too worried about that. Management is bullish for its longer-term prospects, and Tyson’s forward P/E ratio of 9 is intriguing.

Other companies didn’t do as well last year but could see their fortunes change in the coming years. Food giant Archer Daniels Midland gained 5%, but some analysts, such as those at BMO Capital Markets, see it as a bit overvalued now; BMO cut its rating to market perform. The company recently raised its dividend by 9%, and it now yields 2.3%. In February, it posted strong second-quarter results, despite weak corn processing numbers.

A market darling not so long ago, Green Mountain Coffee Roasters added 3%. Investors have been worried about the patent expiration for its K-Cups, but the company has continued signing big …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Walgreen Dreams of Going Global

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By Jacob Roche, The Motley Fool

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Walgreen  shares soared Tuesday as the company announced higher-than-expected quarterly profits and a new partnership with pharmaceutical distributor AmerisourceBergen and European drugstore Alliance Boots.

For the quarter, net sales were flat, but gross margin improved 120 basis points, leading to a 10.7% increase in net income for the quarter. Notably, net sales were only flat by virtue of opening new stores during the quarter, masking disappointing same-store metrics, which ended up somewhat complicated. Overall same-store sales were down several percentage points, while the average customer ticket went up, but customer traffic went down. So, essentially, customers are spending more, but there are too few customers for it to matter, which isn’t a sustainable situation.

Exciting developments
Walgreen’s sales have been slumping for a year now, though, so that isn’t anything new. The real story is the AmerisourceBergen and Alliance Boots partnership. The partnership will help reduce some of Walgreen’s operational costs, as AmerisourceBergen will begin distributing a number of generic pharmaceuticals that Walgreen traditionally self-distributed. AmerisourceBergen’s superior supply chain will allow for greater efficiencies and daily deliveries.

Alliance Boots and Walgreen have also been granted the option to purchase a significant minority equity position in AmerisourceBergen, through warrants and equity totaling 21% of the company. Once Walgreen and Alliance Boots have together acquired at least 5% of AmerisourceBergen, a Walgreen executive will be placed on the board, and an Alliance Boots executive will be added upon exercise of the warrants.

Alliance Boots is essentially the Walgreen of Europe. Both companies are the largest retail pharmacies in their respective region, putting them in a good position to profit from aging populations that will increasingly need more prescription drugs.

Interestingly, Walgreen purchased 45% of Alliance Boots last summer and has the option to acquire the rest of the company in two years. In that event, Walgreen would have significant influence over AmerisourceBergen. This is part of Walgreen’s plan to create a “global, pharmacy-led, health and well-being enterprise” — an ambitious goal.

Launching the flagship
Barely mentioned Tuesday, but still important, is Walgreen’s flagship strategy. The company is planning three new flagship stores over the next couple of months, in addition to the current four, which offer, among other things, professional manicures, a cafe, a smoothie bar, and a selection of premium cheeses, fresh sushi, and organic food.

Seven stores is hardly enough to move the needle on the company’s declining sales, even if the flagship stores are doing well (Walgreen hasn’t given information specifically about these stores). The stores are also bigger than 20,000 square feet, so even if the concept works, Walgreen can’t just convert its existing stores to the same format. But it may be able to scale the concept down and use the flagship stores to attract attention and brand awareness, a key commodity in the retail market.

Competitors CVS  and Rite Aid  are also revamping their in-store strategies. CVS has added fresh sandwiches and …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Walgreen Expands AmerisourceBergen Strategic Partnership

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By Tim Brugger, The Motley Fool

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Walgreen and strategic partner Switzerland-based Alliance Boots have entered into a 10-year agreement with pharmaceutical distribution wholesaler AmerisourceBergen , the companies announced Tuesday.

Walgreen took a 45% stake in Alliance Boots in June 2012, with the option to purchase the remaining shares within two years.

The new agreement expands on an existing relationship between Walgreen and AmerisourceBergen, and now includes primary distribution of generic and branded pharmaceutical products, scheduled to take effect Sept. 1. Terms of the contract are “market based,” and Walgreen said it expects only mild accretion in fiscal 2014, excluding one-time expenses.

AmerisourceBergen will work with the Walgreen/Alliance Boots Development global platform to enhance worldwide distribution processes. Walgreen and Alliance Boots also have the option to purchase as much as 7% of AmerisourceBergen’s stock in the open market.

Additionally, Walgreen and Alliance Boots received warrants for AmerisourceBergen stock, equal to a 16% equity position. The first warrants have a strike price of $51.50 per share, and are exercisable over a six-month period beginning March 2016. The remaining 8% stake will be available March 2017 and are also exercisable over six months, at a price of $52.50 a share.

AmerisourceBergen said the new agreements are expected to be “meaningfully accretive” to earnings. In FY 2014, the new relationship is expected to contribute an incremental $28 billion in revenues and approximately $0.20 in EPS, excluding the amortization of certain expenses related to the transaction, and certain non-recurring costs, and net of certain start up expenses.

Walgreen CEO Greg Wasson was quoted as saying: “We are excited to be expanding our existing relationship with AmerisourceBergen to a 10-year strategic long-term contract, representing another transformational step in the pharmaceutical supply chain.”

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The article Walgreen Expands AmerisourceBergen Strategic Partnership originally appeared on Fool.com.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Media Digest (3/20/2013) Reuters, WSJ, Financial Times

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By 24/7 Wall St.

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The Office of the Comptroller of the Currency lowers its rating of J.P. Morgan Chase & Co. (NYSE: JPM) management. (Reuters)

Fannie Mae and Freddie Mac expect to pay back taxpayer money sooner than expected. (Reuters)

Microsoft Corp. (NASDAQ: MSFT) says it supports a government review of potential bribery charges. (Reuters)

Yahoo! Inc. (NASDAQ: YHOO) may buy a controlling position in video site Dailymotion. (Reuters)

Walgreen Co. (NYSE: WAG), Alliance Boots and AmerisourceBergen Corp. (NYSE: ABC) set a marriage that could affect distribution of medicines around the world. (WSJ)

Volkswagen will recall 384,181 vehicles in China. (WSJ)

American Airlines and U.S. Airways Group Inc. (NYSE: LCC) defend their plan for a merger before the Senate Judiciary Committee. (WSJ)

The HTC One will be delayed because of parts supplies, a blow to the troubled smartphone firm. (WSJ)

Cyprus and the European Union embark on plans to salvage its bailout after a deposit tax failed to get parliament support. (WSJ)

EBay Inc. (NASDAQ: EBAY) will make its seller fees simpler in an effort to compete with Amazon.com Inc. (NASDAQ: AMZN). (WSJ)

Anadarko Petroleum Corp. (NYSE: APC) finds what it claims is a huge oil field in the Gulf of Mexico. (FT)

Filed under: 24/7 Wall St. Wire, Press Digest Tagged: ABC, AMZN, APC, EBAY, JPM, LCC, MSFT, WAG, YHOO

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Source: FULL ARTICLE at DailyFinance

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Walgreen's Names New Distribution Partner

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By 24/7 Wall St.

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The nation’s largest drugstore chain, Walgreen Co. (NYSE: WAG) this morning announced that it and its European partner Alliance Boots have entered into a 10-year contract with drug distributor AmeriSourceBergen Corp. (NYSE: ABC) that includes the right for Walgreen and Alliance Boots to acquire up to 23% of AmeriSourceBergen. According to AmeriSourceBergen the value of the contract in 2014 period is $28 billion. Cardinal Health Inc. (NYSE: CAH), Walgreen’s former distributor, is the odd-man out when its distribution contract with Walgreen’s ends in August.

The equity ownership part of the deal is perhaps most interesting. Under the terms revealed today, Walgreen may purchase up to 7% of AmeriSourceBergen stock on the open market. Walgreen also received warrants to purchase up to a total of 16% of the distributor’s stock. The open market purchases may begin in May 2016 at a strike price of $51.50, about 6.6% above AmeriSourceBergen’s closing price last night. The second round of purchases, amounting to 16% of AmeriSourceBergen total equity, begins in May 2017 and lasts for six months at a strike price of $52.50.

Once Walgreen accumulates a 5% stake in the company, Walgreen’s will appoint one of its executives to AmeriSourceBergen’s board. Once the full equity position is wrapped up, Alliance Boots will name a second director. The two new directors are additions, not replacements, to AmeriSourceBergen’s board. Walgreen owns 45% of Alliance Boots.

Walgreen’s shares are up about 4.4% in the early afternoon, at $44.30 in a 52-week range of $28.53 to $45.80. AmeriSourceBergen’s shares are up 5.7% at $51.07 in a 52-week range of $35.48 to $52.15.

Cardinal Health is watching its share price dive nearly 7% to $42.96 in a 52-week range of $36.91 to $47.23.

Filed under: 24/7 Wall St. Wire, Retail Tagged: ABC, CAH, WAG

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Source: FULL ARTICLE at DailyFinance

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Walgreen Co. Reports Fiscal 2013 Second Quarter Results

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By Business Wirevia The Motley Fool

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Walgreen Co. Reports Fiscal 2013 Second Quarter Results

  • Company reports adjusted second quarter earnings per diluted share of 96 cents, compared with adjusted earnings per diluted share of 88 cents in year-ago quarter; GAAP earnings per diluted share of 79 cents compared with 78 cents in last year’s second quarter
  • Cash flow from operations reaches second-quarter record $1.2 billion
  • Alliance Boots and joint synergy program on track to deliver first-year targets
  • Walgreens and Alliance Boots form strategic, long-term relationship with AmerisourceBergen; includes 10-year comprehensive agreement for AmerisourceBergen to handle pharmaceutical distribution for Walgreens

DEERFIELD, Ill.–(BUSINESS WIRE)– Walgreen Co. (NYSE, NASDAQ: WAG) today announced earnings and sales results for the second quarter and first half of fiscal year 2013 ended Feb. 28.

Net earnings determined in accordance with generally accepted accounting principles (GAAP) for the fiscal 2013 second quarter were $756 million or 79 cents per diluted share, compared with $683 million or 78 cents per diluted share in the year-ago quarter. Last year’s results benefited from one extra day versus the current year because of leap year.

Adjusted fiscal 2013 second quarter net earnings were $915 million or 96 cents per diluted share, compared with adjusted net earnings of $767 million or 88 cents per diluted share in the year-ago quarter. This year’s adjusted second quarter results exclude the negative impacts of 12 cents per diluted share in acquisition related items, and 5 cents per diluted share from the quarter’s LIFO provision.

“We are pleased with the quarter’s results as we saw substantial strength in our pharmacy performance, leading to strong earnings growth,” said Walgreens President and CEO Greg Wasson. “With our Balance™ Rewards program now totaling more than 60 million enrollments, our preferred status with four national Medicare Part D plan sponsors and our very successful flu shot program this year, our customers are responding to our purpose to help them get, stay and live …read more
Source: FULL ARTICLE at DailyFinance

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AmerisourceBergen Announces Strategic, Long-Term Relationship with Walgreens and Alliance Boots

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By Business Wirevia The Motley Fool

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AmerisourceBergen Announces Strategic, Long-Term Relationship with Walgreens and Alliance Boots


Agreement Includes 10-Year Brand and Generic Distribution Contract with Walgreens and Access to Generics Sourced Through Walgreens Boots Alliance Development GmbH Joint Venture

VALLEY FORGE, Pa.–(BUSINESS WIRE)– AmerisourceBergen (NYS: ABC) today announced that it is entering into a strategic, long-term relationship with Walgreen Co. and Alliance Boots GmbH, which will streamline the distribution of pharmaceuticals to Walgreens’ stores and leverage global supply chain efficiencies while improving patient access to affordable pharmaceuticals to increase the efficiency of the healthcare system. AmerisourceBergen’s new expanded relationship with Walgreens and Alliance Boots includes: a ten-year comprehensive primary pharmaceutical distribution contract with Walgreens; access to generic drugs and related pharmaceutical products through the Walgreens Boots Alliance Development joint venture; and opportunities to accelerate the Company’s efforts to grow its specialty and manufacturer services businesses domestically and internationally. In furtherance of this new partnership, Walgreens and Alliance Boots together have been granted rights to purchase an equity position in AmerisourceBergen, which is described in greater detail below.

The new agreements are expected to be meaningfully accretive to AmerisourceBergen’s earnings and strengthen its confidence in delivering solid and sustainable long-term EPS growth. AmerisourceBergen has serviced Walgreens’ specialty business for several years, and in our fiscal 2014, the new relationship is expected to contribute an incremental $28 billion in revenues and approximately 20 cents in earnings per share, excluding the amortization of certain expenses related to the transaction, and certain non-recurring costs, and net of certain start up expenses.

“AmerisourceBergen is very excited to be joining in this unique global relationship with two of the undisputed leaders in healthcare,” said Steven H. Collis, President and Chief Executive Officer of AmerisourceBergen. “As we all recognize the imperatives of health reform not only here in the U.S. but also globally, we have entered into a unique opportunity to unlock value in the pharmaceutical supply chain by collaborating to leverage all of our proven strengths. This new relationship will significantly strengthen and grow our core business and increase our ability to deliver innovative solutions to our customers, and long-term benefits to all of our stakeholders. Importantly, these agreements not only expand our U.S. business, but also provide opportunities to meaningfully grow our specialty and manufacturer services businesses internationally.”

…read more
Source: FULL ARTICLE at DailyFinance

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Walgreens and Alliance Boots Announce Strategic, Long-Term Relationship with AmerisourceBergen

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By Business Wirevia The Motley Fool

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Walgreens and Alliance Boots Announce Strategic, Long-Term Relationship with AmerisourceBergen

– Walgreens expands its existing relationship into 10-year agreement with AmerisourceBergen for pharmaceutical distribution

– AmerisourceBergen to collaborate with Walgreens and Alliance Boots on global supply chain opportunities

– Walgreens and Alliance Boots together to have rights to acquire minority equity position in AmerisourceBergen

DEERFIELD, Ill.–(BUSINESS WIRE)– Walgreen Co. (NYS: WAG) (NAS: WAG) , the largest retail drugstore chain in the United States, and Alliance Boots GmbH, a leading international pharmacy-led health and beauty group, today announced that they have entered into an innovative long-term partnership with AmerisourceBergen, one of North America‘s largest pharmaceutical services companies.

This relationship will enable Walgreens, Alliance Boots and AmerisourceBergen to benefit from greater scale and global opportunities and work together on programs to improve service levels and efficiencies, while reducing costs and increasing patient access to pharmaceuticals. Together these three companies will help address global health care challenges by making it easier for manufacturers to bring products to market; increasing accessibility to the benefits of global sourcing and best practices for community pharmacies; and providing patients with better access to health care. The collaboration will also generate opportunities to attract partners in new markets and prospects in existing markets around the globe.

“Today’s announcement marks another step forward in establishing an unprecedented and efficient global pharmacy-led, health and wellbeing network, and achieving our vision of becoming the first choice in health and daily living for everyone in America and beyond,” said Gregory Wasson, President and Chief Executive Officer of Walgreens. “We are excited to be expanding our existing relationship with AmerisourceBergen to a 10-year strategic long-term contract, representing another transformational step in the pharmaceutical supply chain. We believe this relationship will create a wide range of opportunities and innovations in the rapidly changing U.S. and global health care environment that we expect will benefit all of our stakeholders.”

“This agreement with AmerisourceBergen, which we consider to be the best-positioned pharmaceutical wholesaler in North America, is a promising development for Walgreens and Alliance Boots following the formation of our strategic partnership last year,” said Stefano Pessina, Executive Chairman of Alliance Boots. “We strongly believe that our new partnership with AmerisourceBergen will deliver long-term shareholder value by creating an unmatched network of companies that is well positioned to anticipate increasing market needs and expectations across the world. Together we will bring tailored solutions to business partners, including manufacturers …read more
Source: FULL ARTICLE at DailyFinance

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Can Walgreen's Stock Rise 200%?

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By Tamara Rutter, The Motley Fool

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Shares of Walgreen were all over the map last year. The company’s fallout with pharmacy benefits manager Express Scripts , as well as increased competition from CVS Caremark and Rite Aid , left Walgreen in poor shape in 2012. However, 2013 is shaping up to be a moneymaking year for the country’s largest drugstore chain. Let’s take a closer look at what Walgreen has planned for the year ahead, and what catalysts are needed to push the stock into two-bagger territory.

A brief flashback
There’s no denying that the past few years have been challenging for the drugstore chain. The company’s messy breakup with PBM Express Scripts resulted in billions of lost revenue for Walgreen. In fact, before the dispute, Express Scripts accounted for about $5 billion in annual sales for the pharmacy retailer.

Express Scripts provides a variety of pharmacy services to its clients, including patient care and benefit management care. However, when Walgreen dropped its contract with Express Scripts, it subsequently slammed the door on tens of thousands of customers in the Express network. That’s not all.

Rivals including CVS and Rite Aid jumped at the opportunity to steal customers away from Walgreen. As millions of customers left Walgreen for CVS and Rite Aid, so, too, did investors. However, to its credit, Walgreen ultimately settled the contract dispute with Express Scripts. In July, the two companies agreed on a new multiyear deal.

Just what the doctor ordered
Once Express Scripts welcomed Walgreen back into the family, the company began working every angle to win back lost pharmacy customers. However, it wasn’t until January of this year that Walgreen’s prescription volumes finally showed signs of a turnaround. “January prescription volume increased in the low double digits, which was above analyst expectations and followed months of declining prescription sales comparisons,” Barron’s reported.

This is particularly encouraging because prescription sales make up about two-thirds of Walgreen’s total revenue, although Walgreen is hoping its acquisition of Alliance Boots will help boost future sales at the company. Walgreen coughed up $6.7 billion for a 45% stake in the European drugstore chain last year and will take on billions in debt to fund the cash-and-stock deal. Nevertheless, this decision carries both risks and opportunities for the company.

Global opportunities
True, it isn’t the best time to gain European exposure. However, the deal positions Walgreen for international growth in the years to come — particularly thanks to Alliance Boots‘ position as the largest British drugstore chain, as well as the company’s 3,300 stores across 25 countries. Shareholders will also be glad to know that Alliance Boots‘ executive chairman, Stefano Pessina, predicts double-digit earnings growth in the quarters to come, according to Barron’s.

Meanwhile, Walgreen CEO Greg Wasson said the company’s strategic partnership with Alliance Boots will allow it to establish “an unprecedented and efficient global platform.” “As our two iconic brands come together, we will have a platform that will be very difficult, if …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Legal &amp; General Group Lifts Dividend By 20% to Yield 4.7%

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By Maynard Paton, The Motley Fool

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LONDON — The shares of Legal & General  climbed 1 pence to 163 pence during early trade this morning after the general insurer lifted its full-year dividend by 20%.

A 7.65 pence per share payout was declared for 2012, up from 6.4 pence per share for 2011.

The dividend news accompanied 12-month results that showed annual premiums up 15% to 2.1 billion pounds and pre-tax profits up 9% to 1 billion pounds. The company said sales of individual annuities jumped 26% while investment assets under management advanced 9% to 406 billion pounds.

Nigel Wilson, Legal & General’s chief executive, said:

Legal & General’s double-digit sales growth in 2012 broke records, again demonstrating that customers value our insurance, savings and investment propositions. An uncertain, sluggish economy has had minimal impact. The more important growth drivers for us are ageing populations, falling state spending on welfare and new long-term investment opportunities as banks retrench.

Looking ahead, Mr Wilson claimed Legal & General had the capability and “focused ambition” to grow earnings further during 2013 and beyond.

He also said the insurer would, following the introduction of new pension rules, “auto-enroll” more than 150,000 employees from Alliance Boots, Asda, Co-operative Group, and Marks & Spencer into a new workplace savings scheme.

Based on today’s figures, Legal & General is valued at 12 times earnings and offers a 4.7% income.

Of course, whether this morning’s results, the share-price valuation and the wider prospects for the insurance sector all combine to make Legal & General a buy remains your decision.

However, if you already own Legal & General shares and are looking for an alternative dividend opportunity, this exclusive in-depth report reviews an attractive alternative.

In fact, the blue chip in question offers a 5.7% income and has just been declared the “Motley Fool’s Top Income Stock For 2013”!

Just click here to download the report — it’s free.

The article Legal & General Group Lifts Dividend By 20% to Yield 4.7% originally appeared on Fool.com.

Maynard does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance