Walgreens Boots Alliance 1Q16 Earnings Call Notes


Stefano Pessina

Rite aid acquisition progressing as planned

“As you have heard, we are not assuming our proposed acquisition of Rite Aid will provide any material accretion for the 2016. But I would reiterate that this transaction is progressing as we expected and planned. We continue to anticipate completing the acquisition in the second half of calendar year 2016. The transaction remains subject to approval by Rite Aid’s shareholders, regulatory clearances, and other customary closing conditions.”

I am convinced that vertical integration is necessary

“Yes, you know what I think. I couldn’t have been clearer since the very beginning. I have seen this market and I am really convinced that vertical integration is a necessity for the market, [by] market. It is part of what we have to do to reduce — to control the costs in the healthcare arena. Any kind of vertical integration is good. It depends on the opportunities that we will have. It depends on the availability of partners.”

We don’t do a deal just for control

“let me say that I have never, ever spoken about control. What we want is to do something which creates value — long-term, sustainable value. We have never spoken about control. We have done many, many deals where at the end we have lost the control, and it’s by chance that many of our mergers have come back. And this was not the design. It was just the force of things. When you merge a company, when you merge two companies, you have one company; and of course, all the people of the previous two companies are members of the new company. ‘

Alex Gourlay

Valeant is a great team to work with

“So we saw the opportunity to lift and shift our best practice in Europe into Valeant. And they liked the idea, and they walked through it pretty quickly and got to a good place in that pretty short period of time. They are a great team to work with, and we wish Mike a very speedy recovery. The team themselves are very engaged and working with us very well, and we will do all we can to make sure that any concerns are taken care of and are independently reviewed.”