Walgreen and CVS strike new deal, avoids split

NEW YORK (AP) — CVS Caremark Corp. and Walgreen Co. have settled a dispute that threatened to change where millions of Americans fill prescriptions.

The companies, which said today they have agreed on a multiyear deal but did not disclose its terms, were battling over the amounts Caremark reimburses Walgreen for filling prescriptions for Caremark patients.

Shares of both companies rose more than 3 percent in morning trading.

Walgreen and CVS do billions of dollars in business together every year, as Walgreen is the largest U.S. drugstore operator and CVS's Caremark is the third-largest prescription benefits manager. It handled drug benefits for about 53 million people last year. At the same time, the CVS drug store chain is Walgreen's top competitor.

Last week, the companies said they would end their relationship and Walgreen would stop accepting Caremark insurance.