Walgreens is set to launch Walgreens Specialty Pharmacy, a $24 billion business that will integrate gene and cell services with its existing pharmacy assets, including AllianceRx. This move, which will take effect on August 1, is part of CEO Tim Wentworth’s plan to focus on providing more healthcare services in stores and strengthening the pharmacy business. The creation of Walgreens Specialty Pharmacy will solidify the company’s commitment to the specialty pharmacy business, laying to rest any rumors of a potential exit.
The new Walgreens Specialty Pharmacy is positioned to become the largest independent provider in the industry, offering robust specialty capabilities without being vertically aligned with a pharmacy benefit manager. Despite rumors in January suggesting a possible sale of Shields Health Solutions, the specialty pharmacy acquired by Walgreens three years ago, the company has confirmed that Shields will remain a part of its healthcare segment. Shields works with hospitals and health systems to establish and operate on-site specialty pharmacies.
Walgreens’ announcement of the expansion of its specialty pharmacy business comes shortly before the Asembia AXS24 Summit, an annual conference focused on specialty pharmacy. Specialty pharmacies play a crucial role in the U.S. healthcare system, particularly with the increasing availability of expensive biotechnology-derived drugs that require specialized handling and administration. These medications account for a significant portion of total pharmacy spend, driving up overall healthcare costs for employers and insurers.
Under the new Walgreens Specialty Pharmacy business, several key components will be included. This will comprise a gene and cell services pharmacy and innovation center in Pittsburgh, Pennsylvania, along with central and community-based specialty pharmacies across the nation staffed by specialty-trained pharmacists and patient advocacy support teams. These teams will provide comprehensive care and support for patients dealing with chronic or complex conditions, including assistance with medications, financial resources, and coordination of care with doctors and insurance plans.
Specialty medications have become a major cost driver in the U.S. healthcare system, comprising a small percentage of prescription volume but a significant portion of total pharmacy spend. Employers and insurers are grappling with rising costs as a result of these pricey specialized drugs. The introduction of Walgreens Specialty Pharmacy aims to address the growing demand for specialized services and support for patients and healthcare providers dealing with complex conditions and expensive medications.
In conclusion, Walgreens’ launch of Walgreens Specialty Pharmacy signals a strategic shift towards providing more comprehensive healthcare services and focusing on the lucrative specialty pharmacy business. With a strong presence in the specialty pharmacy market and a commitment to supporting patients and healthcare providers, Walgreens is positioning itself as a key player in addressing the challenges posed by expensive specialized medications in the U.S. healthcare system. The company’s investment in this area reflects the growing importance of specialty pharmacy services in managing complex health conditions and driving healthcare innovation.
