Walgreens signs prescription drug program with Caterpillar

Deerfield, Ill. Walgreen Co. said Wednesday it signed a deal with Caterpillar to offer prescription drugs directly to employees of the world's largest maker of construction and mining equipment.

The agreement is effective starting in 2010. Financial details were not disclosed.

Under the program, Caterpillar is given a Walgreens Proprietary Price List, which is based off of the cost Walgreens pays the drug companies.

"Transparency around pharmacy pricing, elimination of unnecessary and hidden costs in the prescription drug supply chain and the opportunity to effectively deliver lower cost solutions are in great demand by the employer community," said Todd Bisping, Caterpillar's pharmacy benefits manager.

The companies also agreed to explore ways of creating an integrated healthcare and pharmacy program.

Walgreens is also separately providing Caterpillar employees, dependents and retirees a discount on all Walgreens branded and non-branded products. The discount will be effective Jan. 1, 2010.