Dispute between Walgreens and CVS settled
They settled a dispute that could have prevented patients from filling prescriptions at Walgreens stores, Walgreen Co. and CVS Caremark Corp. has said.
The Chicago Tribune has reported that the companies did not disclose terms of the settlement. The dispute centered on how Caremark determines discounts for medications filled at Walgreens pharmacies. Caremark not only operates drug stores but also handles prescription benefit plans for employers nationwide.
The settlement is expected to prevent what could have been a disruption for Walgreen customers. Caremark covers one out of every 10 Walgreen pharmacy customers.
It has further been reported that Wall Street welcomed word of the end of the dispute and shares of both companies were up Friday after falling more than 5 percent since the feud became public two weeks ago.
Walgreens, earlier this month, had said that it would no longer participate in the Caremark prescription network because, it said, Caremark paid too little for Walgreen prescriptions to encourage patients to move their business to CVS. But Caremark countered that Walgreens wanted excessive discounts and said it would remove Walgreen from the network. (With inputs from Agencies)