Earlier this morning, American tech giant Microsoft (MSFT) announced its strategic partnership with pharmaceutical firm Walgreens Boots Alliance (WBA). After the announcement, the stocks of both the companies were trading on a positive note in the premarket session on Tuesday. Let’s take a look at some details of the deal.
According to Microsoft’s press release, its deal with Walgreens is intended “to develop new health care delivery models, technology and retail innovations to advance and improve the future of health care.” The companies said that they would work together to make healthcare delivery “more personal, affordable and accessible” globally by combining the capabilities of their various products.
In his comments on the deal, Microsoft CEO Satya Nadella emphasized the need for lowering the cost of healthcare. He added that “combining the power of the Azure cloud and AI technology and Microsoft 365 with Walgreens Boots Alliance’s deep expertise and commitment to helping communities around the world lead healthier and happier lives.”
Microsoft and Walgreens will work together and invest in the research and development of healthcare solutions under a seven-year agreement.
At 9:01 AM EST, MSFT and WBA stocks were up by 0.7% and 0.5%, respectively. On a month-to-date basis, Microsoft and Walgreens have gone up by 0.5% and 3.4%, respectively. At the same time, other large US companies (SPY) such as Netflix (NFLX), Amazon.com (AMZN), NVIDIA (NVDA), and Walmart (WMT) have gone up by 24.4%, 7.7%, 12.7%, and 1.9%, respectively. Microsoft’s direct peer Apple (AAPL) has seen 4.9% value erosion in January so far.