Walgreens Boosts Alliance (WBA) New Program a Positive Indicator Rite Aid (RAD) Deal to Close - Leerink

September 16, 2016 1:22 PM EDT
Get Alerts WBA Hot Sheet
Price: $83.11 +1.89%

Rating Summary:
    20 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 29 | New: 38
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Leerink Partners analyst David Larsen notes Walgreens Boosts Alliance (NASDAQ: WBA) announced a new 90-day adherence program to improve adherence and outcomes among patients with chronic conditions. He sees this as a positive indicator for the Rite Aid (NYSE: RAD) deal close.

Larsen ntoes vailable to EnvisionRx clients, Rx90 gives patients the option to fill 90-day prescriptions at Walgreens pharmacies nationwide for the equivalent price as home delivery through EnvisionPharmacies' mail service. We estimate that this is one of the only PBM programs in existence - other than Maintenance Choice - that prices a 90-day supply of RX at retail, the same as the mail price.

"We believe that WBA and Envision are likely willing to enter into this type of deal because both parties may have high conviction that the WBA/RAD transaction will close," he said.

The firm maintained an Outperform rating and price target of $95 on WBA.

For an analyst ratings summary and ratings history on Walgreens Boosts Alliance click here. For more ratings news on Walgreens Boosts Alliance click here.

Shares of Walgreens Boosts Alliance closed at $81.40 yesterday.

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