DEERFIELD, ILL. — Nearly two weeks after Walgreens here decided to pull the plug on servicing CVS Caremark’s pharmacy benefit management patients, the two companies have reconciled their differences, it was announced Friday.
Walgreens said it will continue participating in the CVS Caremark PBM national retail network for existing, new or renewal plans.
The companies did not disclose 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,” said Kermit Crawford, Walgreens executive vice president of pharmacy, in a press statement.
Per Lofberg, president of CVS Caremark’s pharmacy benefit management business, said, “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.”
Was this agreement inevitable? Andrew Wolf, an analyst at BB&T Capital Markets, Richmond, Va., called the situation a “zero sum game” for both retailers. If the parties hadn’t come to some agreement, it would have meant that other PBMs had a chance to gain greater market share in the sector, he told SN.
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