AmerisourceBergen begins supplying Walgreens’ brand-name drugs

Walgreens officially began a 10-year distribution agreement through which all of Walgreens’ brand-name drugs will be sourced through AmerisourceBergen.

Next year, AmerisourceBergen will begin supplying Walgreens’ generic products also.

“We are proud to launch a major operational phase of our new distribution agreement with Walgreens today,” said Steve Collis, AmerisourceBergen’s president and CEO. “Our partnership with Walgreens marks the largest distribution deal of its kind within the pharmaceutical industry, and we are confident our teams will execute operations seamlessly to supply the millions of Walgreens customers with brand and generic pharmaceutical products.”

Both Walgreens and AmerisourceBergen describe the agreement as a win-win situation, as AmerisourceBergen will also have access to global sourcing for generic drugs and related pharmaceutical products through the joint venture between Walgreens and Alliance Boots.

“Today marks a significant milestone as we expand our relationship with AmerisourceBergen to form a collaborative wholesale-retail model in the U.S.,” said Greg Wasson, Walgreens’ president and CEO. “AmerisourceBergen’s leadership in distribution and emphasis on community pharmacy, health systems, and alternate sites of care aligns perfectly with our goal to transform the role of community pharmacy.”

Under the terms of the agreement, Walgreens and Alliance Boots can also purchase a minority equity position in AmerisourceBergen, up to 7% of the fully diluted equity of AmerisourceBergen in the open market.