RAD Rite Aid Corp

Walgreens Boots Alliance Inc. said Monday it has formed a long-term strategic alliance with pharmacy-benefits manager Prime Therapeutics as it seeks to capture a greater share of the prescription-drug market.

Financial terms weren't disclosed for the agreement, which makes Walgreens Boots the preferred pharmacy for Prime's members and combines the companies' central specialty pharmacy and mail-service businesses. The partnership also includes greater data-sharing between the two companies.

Prime, one of the U.S. largest pharmacy-benefits managers, is owned by 14 leading Blue Cross and Blue Shield health plans and has 22 million members.

Walgreens Boots would become the core participant in Prime's national preferred pharmacy network at the start of next year under the deal. As a result, Prime members could see lower prices for some prescriptions filled at Walgreens.

The combined central specialty and mail services company will have its own board and executive team, which will be selected by Walgreens Boots and Prime.

Walgreens Boots has been overhauling its business since the 2014 merger of the U.S. drugstore chain Walgreen with the European retailer and drug wholesalers Alliance Boots. With reimbursement rates for prescription drugs under pressure, the company has been cutting costs and forging new ties with drugmakers and health insurers.

Walgreens in March formed a partnership with UnitedHealth Group Inc.'s OptumRx, which manages prescription drug insurance for more than 66 million Americans.

The company, the nation's largest drugstore chain, also is in the midst of buying smaller drugstore chain Rite Aid Corp. for about $9.4 billion as it takes part in a rapidly consolidating U.S. health-care sector.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

August 29, 2016 11:25 ET (15:25 GMT)

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