business

Walgreens sells its PBM business

NEWS IN BRIEF — Posted March 21, 2011

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Walgreen Co. announced that it plans to sell its pharmacy benefit management business, Walgreens Health Initiatives, to Rockville, Md.-based Catalyst Rx.

Walgreens said the deal is part of a plan to focus more on expanding its pharmacy and health and wellness businesses, which includes the retail clinic chain Take Care Health.

Rumors of Walgreens' intention to sell its PBM business started in 2009. Many analysts predicted that Express Scripts would be the purchaser after it acquired WellPoint's PBM NextRx in 2009.

Catalyst, whose business will grow to more than 18 million members because of the acquisition, is paying Walgreen Co. $525 million cash.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/03/21/bibf0321.htm.

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