Walgreens acquires certain assets of BioScrip's community and specialty pharmacies, centralized specialty and mail service pharmacy business; deal valued at roughly US$225M

Cindy Allen

DEERFIELD, Illinois , May 7, 2012 (press release) – Walgreen Co. (NYSE: WAG - News) (NASDAQ: WAG - News) today announced that it has completed its acquisition of certain assets of BioScrip, Inc.’s (NASDAQ: BIOS - News) community specialty pharmacies and centralized specialty and mail service pharmacy businesses.

The transaction represents a total deal value of approximately $225 million. Taking into account events that occurred between signing and closing of the transaction, up to an additional $16 million in purchase price may be payable based on events related directly or indirectly to Walgreens retention after the closing of certain business included in the transferred businesses. The acquisition fits the company’s “Well at Walgreens” strategy as it advances community pharmacy and brings additional specialty pharmacy products and services closer to patients. The acquisition also will help grow Walgreens centralized specialty and mail service pharmacy operations.

“We welcome the BioScrip leaders and employees involved in the transaction to the Walgreens family,” said Walgreens President of Pharmacy, Health and Wellness Kermit Crawford. “BioScrip’s clinically focused community specialty pharmacies and access to additional limited distribution drug therapies, combined with Walgreens existing nationwide network of retail and health system pharmacies, creates a strong network of support for our core drugstore business to provide specialty pharmacy solutions to our patients. This acquisition also significantly expands our nationwide reach to an additional half-million patients with chronic and complex health conditions.”

The acquired community specialty pharmacy business includes a national network with 30 locations in 16 states across the U.S. and the District of Columbia, primarily serving HIV, oncology and transplant patients. Walgreens also acquired certain assets of BioScrip's centralized specialty pharmacy business and traditional mail service pharmacy business that dispenses prescriptions for, among others, drugstore.com, which was acquired by Walgreens in June 2011.

About Walgreens

As the nation's largest drugstore chain with fiscal 2011 sales of $72 billion, Walgreens (www.walgreens.com) vision is to become America’s first choice for health and daily living. Each day, Walgreens provides nearly 6 million customers the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice in communities across America. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility and mail service, along with respiratory services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. The company operates 7,855 drugstores in all 50 states, the District of Columbia and Puerto Rico. Take Care Health Systems is a Walgreens subsidiary that is the largest and most comprehensive manager of worksite health and wellness centers and in-store convenient care clinics, with more than 700 locations throughout the country.

Forward-Looking Statements

Cautionary Note Regarding Forward-looking Statements: Statements in this press release that are not historical are forward-looking statements. Words such as “expect,” “likely,” “outlook,” “forecast,” “would,” “could,” “should,” “can,” “will,” “project,” “intend,” “plan,” “continue,” “sustain,” ”on track,” “believe,” “seek,” “estimate,” “anticipate,” “may,” ”possible,” “assume,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results to vary materially from those indicated, including the ability to successfully integrate the acquired business, the ability to realize anticipated synergies, the ability to achieve anticipated financial results and other factors described in Item 1A (Risk Factors) of Walgreens most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and its subsequent SEC filings, which risks and uncertainties are incorporated herein by reference. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, Walgreens disclaims any obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.

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