News Update: Walgreen Will No Longer Be A Provider In New Manger Prescription Drug Plans

6/7/2010- Walgreen (NYSE:WAG) said that it will no longer be a provider in new or renewed prescription drug plans awarded to CVS Caremark's (NYSE:CVS) pharmacy benefit manager.

The company said that CVS Caremark's promotion of some plan designs upsets networks by requiring patients to use the company's services. Walgreen also said that CVS Caremark's fluctuating reimbursement rates also factors in to the ending of the relationship between the two companies.

"Walgreens participates in hundreds of pharmacy benefit networks, which serve an important function in the marketplace by providing comprehensive access to prescription services for patients in prescription drug plans across the country," said Walgreens President and CEO Greg Wasson. "Unfortunately, as a result of CVS Caremark's pharmacy benefit management practices toward Walgreens, it no longer makes good business sense for Walgreens to be part of their network for new and renewed plans. We will continue to participate in current CVS Caremark plans to provide continuity of care and service to our pharmacy patients."

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