Drugstore chain Walgreen's fiscal second-quarter earnings climbed 11 percent, helped by contributions from European health and beauty retailer Alliance Boots, a business sale gain, and its new contract with Express Scripts Holding Co.
The Deerfield, Ill., company also said Tuesday that it is expanding a supply agreement with AmerisourceBergen Corp. with a deal that gives it and Alliance Boots an ownership stake in the pharmaceutical wholesaler.
A Walgreen spokesman said AmerisourceBergen will replace primarily Cardinal Health Inc. in supplying pharmaceuticals. Previously, AmerisourceBergen had supplied only some specialty drugs for Walgreen, the nation's largest drugstore chain.
Walgreen and Alliance Boots receive the right to buy up to 7 percent of AmerisourceBergen's shares and warrants to purchase an additional 16 percent. Walgreen also acquired an Alliance Boots stake last year and will wind up owning the entire AmerisourceBergen stake if it exercises its option to buy the rest of Alliance Boots in 2015.
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