Walgreen Co. (NASDAQ:WAG)’s new partnerships and developments

369

By Lisa Bradley on October 9, 2014 BioPharma

Walgreen Co. (NASDAQ:WAG) announced their earnings of the fourth quarter of 2014 at the end of September. After that, the stock price decreased. The company was happy to report its largest fiscal year and quarterly sales in about three years. Still, because of the low profitability of generic drugs and a much anticipated decrease in reimbursement rates, the company’s gross margins are suffering. It was reported as of October 3 that Walgreen Co. (NASDAQ:WAG) continues to grow its top line. There was a 9.4% increase in the annual sales for September, which was worth $5.92 billion. In the last few trading sessions, the stock price of the company has arrived at its pre-earnings level.

While announcing the fourth quarter earnings for the 2014 fiscal, Walgreen Co. (NASDAQ:WAG) also announced that their share in the retail pharmacy market has met with a growth of 30 basis points, which is 19%, in the current fiscal. The company is expecting a continued increase in its pharmacy volume. Med D’s, Walgreen Co. (NASDAQ:WAG)’s enterprise immunizations and specialty business, continued growth will be shared with the valued customers.

In the last week, Walgreen Co. (NASDAQ:WAG) announced that they were partnering with WebMD Health Corp. (NASDAQ:WBMD), the health information website. The purpose of this agreement was to make the U.S. population a healthier one by encouraging them to make healthy choices wherever they are – at home, in the office, on-the-go. Walgreen Co. (NASDAQ:WAG) will be incorporating the content of WebMD Health Corp. (NASDAQ:WBMD) in their stores and digital experience. This content will be co-branded by both the companies.

By early next year, Walgreen Co. (NASDAQ:WAG) will start a new program to encourage healthier choices among consumers; they will reward points on the Balance Reward cards for the users who log healthy activities on the WebMD Healthy Target app. Currently, the program gives the customers points when they buy something. These points can be redeemed for later purchases.

WebMD Health Corp. (NASDAQ:WBMD) offers health coaching to those people who are under contracts with insurance companies or employers. Walgreen Co. (NASDAQ:WAG) will take advisory content from WebMD Health Corp. (NASDAQ:WBMD) and integrate it in their applications, on their website and in their physical locations. The content will be related to allergies, skin care, heart conditions and aging.

The visitors at WebMD can use their prescriptions from Walgreens to get refills and use the options of Walgreens appointment scheduling from the WebMD website. WebMD Health Corp. (NASDAQ:WBMD) consumers can avail the advantages of the incentives offered by Walgreen Co. (NASDAQ:WAG) in the Balance Rewards program. This partnership will drive more loyal customers to Walgreen Co. (NASDAQ:WAG)’s stores. It will also allow WebMD Health Corp. (NASDAQ:WBMD) to provide their coaching programs to Walgreen Co. (NASDAQ:WAG) customers.

Early in this week, Walgreen Co. (NASDAQ:WAG) also announced a partnership with Department of Veterans Affairs. The aim of this partnership is to provide care coordination to the 8.5 million patients that have been enrolled with the VA. It will also help to integrate immunization records for these patients.