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Walgreens and Humana are reportedly in talks to take stakes in each other

Robert Ferris
  • Walgreens and Humana are reportedly in talks to take stakes in each other
  • The talks reportedly include the possibility of expanding a clinic partnership.
  • Amazon has moved into both retail and health insurance, threatening incumbents.

Drugstore chain Walgreens WBA and health insurer Humana HUM are in preliminary talks to take stakes in each other, Dow Jones reported Tuesday, citing unnamed sources.

The reportedly wide-ranging talks include the possibility of expanding a clinic partnership.

The talks are a sign of the disruption facing both pharmacies and health insurance, especially from formidable competitors such as Amazon AMZN , which recently acquired online pharmacy PillPack and is partnering with Berkshire Hathaway BRK.A and JP Morgan JPM to reduce health-care costs for its employees. Amazon also has launched its own line of over-the-counter drugs.

Pharmacy sales account for almost 70 percent of Walgreens' U.S. revenue. In the less competitive international retail environment, Walgreens garners about 35 percent of its sales from its pharmacy.



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