Walgreens Will Open 600 LabCorp Locations in Its U.S. Stores

(Bloomberg) -- Walgreens Boots Alliance Inc. plans to open at least 600 medical testing locations in its drugstores run by Laboratory Corp. of America Holdings, the pharmacy chain’s latest move to offer more services and products at its stores.

Key Insights

  • The collaboration is an attempt to compete with CVS Health Corp., Walgreens’ biggest drugstore rival. CVS is planning to offer more medical services at its stores and be a health hub for customers following its deal to buy insurer Aetna Inc.
  • The venture with LabCorp, one of the U.S.’s biggest providers of patient testing, follows a Walgreens partnership with Theranos Inc. that fell apart after the blood-testing startup’s technology failed to work.
  • The health-care supply chain is consolidating, and retailers are facing their own pressure, forcing Walgreens to find new ways to draw customers through its doors.

Market Reaction

Walgreens shares were up 1.5 percent to $73.39 after the market closed in New York. The pharmacy company reports quarterly earnings on Thursday morning. LabCorp shares were little changed.

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