Rite Aid (RAD), Walgreen (WAG) Mixed Following CVS-Cardinal Health News
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Price: $107.74 +0.80%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.5%
EPS Growth %: +1.1%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.5%
EPS Growth %: +1.1%
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CVS Caremark (NYSE: CVS) competitors Rite Aid (NYSE: RAD) and Walgreen (NYSE: WAG) are on watch as the retail pharmacy giant entered a new generic sourcing entity agreement with Cardinal Health, which is said to be the largest in the U.S.
Both companies are contributing their sourcing and supply chain expertise to this 50/50 joint venture and are committing to source generic drugs through it. n order to reflect an equitable 50/50 joint venture, the agreement includes a quarterly payment of $25 million over the life of the agreement from Cardinal Health to CVS Caremark. The payments have an estimated after-tax present value of $435 million.
While Rite Aid is slightly lower on Tuesday's trading session, Walgreen is up about 0.2 percent.
Both companies are contributing their sourcing and supply chain expertise to this 50/50 joint venture and are committing to source generic drugs through it. n order to reflect an equitable 50/50 joint venture, the agreement includes a quarterly payment of $25 million over the life of the agreement from Cardinal Health to CVS Caremark. The payments have an estimated after-tax present value of $435 million.
While Rite Aid is slightly lower on Tuesday's trading session, Walgreen is up about 0.2 percent.
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