As part of its growth strategy CVS Caremark Corp.
has acquired Longs Drug Stores for $2.9 billion.
The acquisition will add 521 more drugstores in California, Hawaii, Nevada and Arizona to make the grand total of CVS Caremark's drugstores 6,800 in 41 states. The deal will also add to its prescription benefits management services through Long's Rx America subsidiary. CVS has been concentrating on the PBM business -- which sells drugs directly to individual customers and negotiates with drug companies on behalf of employers, insurers, unions, government employee groups and managed-care organizations, as
Cheryl Meyer notes.
Competitor Walgreen Co. isn't in the PBM business, but it has its own niche. Walgreen has been expanding by acquiring in the specialty
pharmacies and services division. In June Walgreen announced it had
acquired CuraScript Infusion Pharmacy Inc., a
home infusion pharmacy division that provides treatments for immune deficiency, chemotherapy and pain management. Walgreen also
acquired OptionCare Enterprises in July 2007 for $850 million in cash.
- Maria Woehr
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