DEERFIELD, Ill.--(BUSINESS WIRE)--
Beginning today, members of Walgreens Boots Alliance, Inc. (Nasdaq:WBA)
management will be meeting with various investors. During these
meetings, in addition to answering general inquiries, the company
intends to clarify its participation in the U.S. Health Resources and
Services Administration 340B drug pricing program.
For the first nine months of fiscal 2017, prescriptions related to the
340B program represented less than 1 percent of the Retail Pharmacy USA
division's prescription volume*. The division has around 1,200 340B
contracts. During the first nine months of fiscal 2017, 340B
prescriptions were filled at approximately 6,100 of the division's
pharmacies. 340B prescriptions represented a small percentage of the
total prescriptions filled by these pharmacies.
The proposal from the U.S. Centers for Medicare and Medicaid Services,
announced on 13 July 2017, seeks to address how Medicare pays hospitals
for drugs acquired under the 340B program, but does not propose
eliminating the program altogether. The hospital market represents
slightly more than half of the Retail Pharmacy USA division's overall
340B prescriptions. As required by law, 340B drug inventory is owned by
the covered entity, not by the pharmacy.
On a pro forma basis, for the nine months ended 31 May 2017, had the
proposed changes to the program been in place throughout the period, the
company estimates that the net impact on Retail Pharmacy USA divisional
adjusted gross profit dollars would have been less than 0.5 percent.
* Prescription volumes, including immunizations, are reported on a
30-day adjusted basis.
Notes to Editors:
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led,
health and wellbeing enterprise.
The company was created through the combination of Walgreens and
Alliance Boots in December 2014, bringing together two leading companies
with iconic brands, complementary geographic footprints, shared values
and a heritage of trusted health care services through pharmaceutical
wholesaling and community pharmacy care, dating back more than 100 years.
Walgreens Boots Alliance is the largest retail pharmacy, health and
daily living destination across the USA and Europe. Walgreens Boots
Alliance and the companies in which it has equity method investments
together have a presence in more than 25* countries and employ more than
400,000* people. The company is a global leader in pharmacy-led, health
and wellbeing retail and, together with the companies in which it has
equity method investments, has over 13,200* stores in 11* countries as
well as one of the largest global pharmaceutical wholesale and
distribution networks, with over 390* distribution centers delivering to
more than 230,000** pharmacies, doctors, health centers and hospitals
each year in more than 20* countries. In addition, Walgreens Boots
Alliance is one of the world's largest purchasers of prescription drugs
and many other health and wellbeing products.
The company's portfolio of retail and business brands includes
Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as
increasingly global health and beauty product brands such as No7,
Botanics, Liz Earle and Soap & Glory.
In October 2016 Walgreens Boots Alliance received the United Nations
Foundation Global Leadership Award for its commitment to the UN's
Sustainable Development Goals. The company also ranks No. 1 in the Food
and Drug Stores industry of Fortune magazine's 2017 list of the World's
Most Admired Companies.
More company information is available at www.walgreensbootsalliance.com.
* As of 31 August 2016, using publicly available information for
** For 12 months ending 31 August 2016, using publicly available
information for AmerisourceBergen.
Cautionary Note Regarding Forward-Looking Statements: All statements
in this release that are not historical including, without limitation,
those regarding proposed revisions to the 340B program and the terms,
timing or effects thereof and any estimates of future financial and
operating performance, are forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are not guarantees of
future performance and involve risks, assumptions and uncertainties,
including those associated with the terms, timing and effects of any
revisions to the 340B program, changes in market and regulatory
conditions, and those described in Item 1A (Risk Factors) of our Form
10-K for the fiscal year ending 31 August 2016 and our Form 10-Q for the
fiscal quarter ended 31 May 2017, each of which is incorporated herein
by reference, and in other documents that we file or furnish with the
Securities and Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially. These forward-looking
statements speak only as of the date they are made. Except to the extent
required by law, we do not undertake, and expressly disclaim, any duty
or obligation to update publicly any forward-looking statement after the
date of this release, whether as a result of new information, future
events, changes in assumptions or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170724005374/en/
Walgreens Boots Alliance, Inc.
Michael Polzin, +1 847-315-2935
International / Laura
Vergani, +44 (0)207 980 8585
Gradwell and Ashish Kohli, +1 847-315-2922
Source: Walgreens Boots Alliance, Inc.
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