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Retailers, consumers and prices

Check Out Line: Walgreen, CVS back together

June 18, 2010

WALGREEN/Check out the happy ending to the fight between CVS Caremark and Walgreen over reimbursements for drug prescriptions.

The two drugstore chains left their differences behind and announced a new “multi-year” deal, salvaging a relationship worth billions of dollars.

Earlier this month, Walgreen said it would phase out its arrangement to fill prescriptions for millions of CVS Caremark drug plan members, citing CVS’s efforts to divert customers and inadequate reimbursement rates. CVS retaliated by saying it would dump Walgreen from its network within a month.

The new deal allows Caremark members to continue to fill their prescriptions at Walgreens pharmacies.

Analysts had told Reuters earlier this week that they expected the two chains to resolve the fight as early as within a month, considering the high stakes for both parties.

Also in the basket:

- David Jones CEO quits for ‘unbecoming’ behavior

- Carlsberg says China brewery strike ends

- Campbell recalls 3 varieties of SpaghettiOs in US

(Reuters Photo)

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