Biz Brief: CVS, Walgreens Shares Jump on New Agreement
Shares of CVS Caremark (CVS) and Walgreens (WAG) surged in premarket trading after the two reported a new network pharmacy agreement. Under the agreement, Walgreens will continue participating in the CVS Caremark pharmacy benefit management (PBM) national retail network for existing, new or renewal plans.
"We are very pleased with the outcome of this mutual, multi-year agreement that meets our business objectives," said Walgreens Executive VP of Pharmacy, Kermit Crawford. "The agreement makes good business sense," he added.
No doubt, Wall Street agrees with him. Following last week's very public dispute between the two, investors have hammered the shares of both companies, saying each will be hurt by their failing to cooperate. Even without the companies disclosing financial terms, already shares are reacting favorably.
Shares of both companies rose more than 5% in premarket trading.