Walgreen Stock Jumps on New Deal with Express Scripts

While no details were provided, Walgreen Co. (NYSE: WAG) and Express Scripts Holding Co. (NASDAQ: ESRX) this morning announced a new multiyear deal that will once again add Walgreens stores to the pharmacy network served by Express Scripts. The two companies dropped complaints against each other in early June, saying, “These dismissals have no impact on the parties’ ability or inability to come to terms on a pharmacy agreement.”

The deal gives Walgreen access to the 150 million members of the Express Scripts pharmacy benefits management network, by far the largest network in the country. In June Walgreen added a multiyear agreement with OptumRx, a division of Unitedhealth Group Inc. (NYSE: UNH), that gave OptumRx’s 14 million members access to Walgreen’s 7,800 retail stores.

Walgreen shares are up about 14% in premarket trading, at $35.25, in a 52-week range of $28.53 to $42.36.

Shares of Express Scripts are up about 3.3% at $59.60, a new 52-week high if it holds. The current 52-week range is $34.47 to $58.98.

Paul Ausick