Strategic partnership with US Walgreens helps lift revenue at Boots as pharmacy profits increase £150million

Posted: Published on May 16th, 2013

This post was added by Dr P. Richardson

By Rupert Steiner

PUBLISHED: 16:15 EST, 15 May 2013 | UPDATED: 17:11 EST, 15 May 2013

A host of branded medicines losing their patents caused sales to fall at the firm behind Boots the Chemist, which stocked cheaper generic pills and creams instead.

But profits at Alliance Boots, Europes largest pharmacy chain, still managed to grow because it still received the same flat rate per prescription from the Government.

The cheaper products meant less cash flowed through its tills, causing sales to fall 2.6 per cent to 22.4billion.

Challenging conditions: Chairman Stefano Pessina said: 'We have again delivered a double digit growth in underlying profit after tax.'

But unfavourable currency conversions the firm has wholesale operations in 20 countries and a focus on higher margin health and beauty products also played a part.

A number of new strategic partnerships including Americas Walgreens taking a 45 per cent stake in Alliance Boots helped boost profit.

The tie-up which is likely to result in a formal merger in two years has seen Americas largest pharmacy chain take Boots products.

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Strategic partnership with US Walgreens helps lift revenue at Boots as pharmacy profits increase £150million

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