Essay Sample on Walgreens & Humana Take Center Stage: Deal-Making in Business

Deal-making is taking center stage in the current times. Business is facing it hard to survive in the market without deal-making, especially for those in different fields. The deal between Walgreens Boots Alliance and Humana and health care insurer has taken center stage. The partnership was covered in the wall street journal, as summarized below. The companies aim to make stakes in each other and provide services for each other.

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Walgreens Boots Alliance, which deals in the drug store and Humana health insurer are in talks to take stakes in each other. It is meant to help them be a position to compete in the changing environment. Just like other companies having partnerships, there are talks with people that the two companies might form an organization meant to serve the seniors in west green, but that is not certain. External threats are existing in the market, and most companies dealing with healthcare providers are contemplating having mergers to be able to compete effectively.

CVS health corp and Aetna, an insurance company, had gotten into a billion dolor deal to have Aetna bought by CVS health corp a year ago that threated the business existence of other similar companies. It is what prompted the Walgreens Boots Alliance to get into an agreement with the Humana, a health insurer, to be able to get a better business positioning in the pharmaceutical industry. Getting into a partnership with Humana, it would be beneficial to Walgreens Boots Alliance. Humana has had a right past by having their shares perform well, which makes it a good deal. The value of Walgreen Boots Alliance is 78 billion, while that of Humana is 42 billion, which makes them have s better value in a partnership.

Walgreen in Deerfield is a big player in the pharmaceutical business with many businesses in the country. It is also a big distributor in other countries, for example, in Europe. Humana in Louisville has a significant market, too, made 53 billion dollar revenue in the past year. It is the second-largest healthcare medical cover plan provider. Humana was allowed to operate healthcare clinics in two stores owned by Walgreens Corp, focusing on older people. Humana is advantageous for seniors because they are spending more on pharmaceuticals. Humana also wants to get more into the business of providing medical care services directly to advantage members.

The two companies look forward to expanding their market national wide. The partnership allows the pharmaceutical giant to start all over again. They had an arrangement with Theranos Inc, which ended up in litigation that was resolved by the Securities and Exchange Commission. After the Humana partnership, LabCorp would get into an arrangement with Walgreens stores in the provision of diagnostic services. Amerisource Bergen's deal did not succeed despite Walgreens owning a significant stake.

Consummating deals between healthcare providers have become unmanageable. Most of them have to do with antitrust such as the Humana and Aetna deal. This year Humana had talks with Humana to make a deal, which has taken a low level lately. Partnerships help companies grow in a competitive business environment. It makes the business stronger to face the business challenges and to provide quality services. It is what Walgreen and Humana hope to do in the talks to purchase stakes from each other.

Reference

The Wall Street Journal (OCT 26TH 2019): Walgreens, Humana are in preliminary talks to take stakes in each other. Retrieved from: https://www.wsj.com/articles/walgreens-humana-are-in-preliminary-talks-to-take-stakes-in-each-other-1542746915