Walgreens reaches agreement with CVS Caremark on participation in PBM national retail network

CVS Caremark Corporation (NYSE: CVS) and Walgreens (NYSE: WAG) (NASDAQ: WAG) today announced that the companies have reached an agreement on terms under which Walgreens will continue participating in the CVS Caremark pharmacy benefit management (PBM) national retail network for existing, new or renewal plans. The companies are not disclosing the financial terms of the new contract.

“We are very pleased with the outcome of this mutual, multi-year agreement that meets our business objectives”

"We are very pleased with the outcome of this mutual, multi-year agreement that meets our business objectives," said Walgreens Executive Vice President of Pharmacy, Kermit Crawford. "The agreement makes good business sense, provides the framework we need to operate our business going forward, and assures choice and convenience for the many consumers who look to us for quality pharmacy care. The agreement is good for our patients, pharmacists and shareholders, and will allow us to continue to meet the needs of our customers across the country through the CVS Caremark network."

Per Lofberg, President of CVS Caremark's pharmacy benefit management business, said, "We are pleased to have reached a mutually agreeable solution together with Walgreens that is consistent with our top priority to provide convenient access to affordable high-quality pharmacy health care. This new contract enables Walgreens to continue participating in CVS Caremark's PBM national pharmacy network, provides enhanced network stability, eliminates any current or long-term disruption for our clients or their members and allows us to continue to fulfill our obligation to deliver cost-effective pharmacy benefits for our clients."

With the continuing participation of Walgreens, the CVS Caremark national pharmacy network will have more than 64,000 participating pharmacies, including neighborhood independent pharmacies, chain pharmacies, and those located in supermarkets and other major retailers.