Mr. Pessina noted Walgreens plans to invest in its businesses and needs to “change a lot” as a result of industry consolidation. However, unlike its chief rival Woonsocket, R.I.-based CVS Health’s $69 billion plan to purchase insurer Aetna, Mr. Pessina said merging with a health plan is not the only way to stay competitive.
“There is much to do with or without a merger with a health plan,” Mr. Pessina reportedly told analysts during a call. “I don’t believe that change is only possible if you merge with a health plan. There are many other models.”
Mr. Pessina noted the company is not ruling out future mergers and acquisitions activity.
Mr. Pessina also did not address Walgreens’ attempt to acquire the remaining roughly 74 percent stake in AmerisourceBergen the company does not already own. Executives from both organizations reportedly met in early February to discuss the proposed acquisition deal, but ultimately failed to come to an agreement.
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