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Alphabet Ties Up with Walgreens, Boosts Healthcare Presence

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Alphabet’s (GOOGL - Free Report) healthcare division Verily has teamed up with Walgreens Boots Alliance (WBA - Free Report) in a bid to strengthen presence in the sector. This partnership is the first of its kind in the pharmacy space.

Both the companies have agreed to work on several healthcare projects together with an aim to make healthcare services affordable for the mass.

The companies are focused on the healthcare management for the people living with chronic diseases by reducing the cost structure for them.

The latest deal seems to be a win-win situation for both the companies. Walgreens will now be able to leverage Verily’s robust technologies to develop better healthcare solutions.

Further, the deployment of Verily’s technology at Walgreens pharmacies will boost the adoption rate of its technology.

Improving Healthcare Initiatives

The latest partnership provides is a testament to Alphabet’s rising healthcare initiatives. Moreover, growing strategic partnerships in healthcare sector will aid the company in rapidly penetrating this multi-trillion market.

To begin with the multiple healthcare projects with Walgreens, Verily is working on a medication adherence pilot project which involves deployment of technically advanced devices to ensure the reach of proper medication to patients.

Further, Onduo, a joint venture (JV) between Verily and Sanofi will collaborate with Walgreens to develop a virtual solution for Type 2 diabetes. Notably, this will be developed via Walgreens employee health plan for the company’s employees.

Apart from the recent partnership, Verily has collaborated with Johnson & Johnson (JNJ - Free Report) to work on a startup named Verge Surgical in order to develop a surgical robot.

Further, Verily is set to form a JV with ResMed with an aim to help people with undiagnosed and untreated sleep apnea by developing a technology which will aid in the diagnosis of this disease.

Additionally, the company is currently working with Dexcom on the creation of a miniaturized glucose monitor, in turn bolstering efforts toward developing non-intrusive glucose-measuring devices.

Alphabet Inc. Price and Consensus

Alphabet Inc. Price and Consensus | Alphabet Inc. Quote

Intensifying Battle

The heavy dependence of healthcare sector on technology is creating big opportunities for tech companies to foray into this particular space with their robust skills and techniques.

Apart from Alphabet, the healthcare sector has been able to attract many tech companies like Amazon (AMZN - Free Report) , Apple and Fitbit, to name a few.

Amazon’s aggressive strategies pose major challenges to Alphabet’s growing initiatives in the sector. Amazon’s announcement of PillPack acquisition remains its biggest step in the sector.

However, Alphabet, by partnering with Walgreens is taking the game to Amazon. Moreover, strong advances that are being made by Verily remain tailwinds for the company.

Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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