Walgreens has announced the launch of Walgreens Specialty Pharmacy, a $24 billion business that will combine new gene and cell services with existing pharmacy assets, including the AllianceRx specialty pharmacy and home delivery business. This move, set to take effect on August 1, is part of Walgreens’ strategy to focus on providing more healthcare services in stores while strengthening the more profitable aspects of pharmacy. The creation of Walgreens Specialty Pharmacy also reinforces the company’s commitment to the specialty pharmacy business.
With approximately $24 billion in annual enterprise specialty revenue, Walgreens Specialty Pharmacy is the largest independent provider in the industry, offering robust specialty capabilities that are not vertically aligned with a pharmacy benefit manager. Walgreens chief pharmacy officer, Rick Gates, emphasized the company’s ability to dynamically contract with any payer, partner with pharmaceutical manufacturers, and work closely with providers to ensure a smooth start to treatment for patients.
Shields Health Solutions, the specialty pharmacy business acquired by Walgreens majority ownership three years ago, will remain a part of Walgreens healthcare segment. Shield’s role is to support providers of medical care by helping them set up and operate on-site specialty pharmacies. Walgreens Specialty Pharmacy will also closely partner with pharmaceutical manufacturers to facilitate the distribution of products, including limited distribution drugs, and coordinate with providers to enhance patient experience.
The announcement of Walgreens Specialty Pharmacy comes ahead of 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 high-cost drugs derived from biotechnology. These medications often require specialized handling, administration, and patient instructions, contributing to their high price tags and the need for specialized pharmacy services.
Specialty medications currently account for a small portion of overall prescription volume but represent a significant portion of total annual pharmacy spend, driving up healthcare costs for employer-based health insurance coverage. Walgreens Specialty Pharmacy will offer a range of services, including gene and cell services pharmacy and innovation center in Pittsburgh, central specialty pharmacies, community-based specialty pharmacies, and a team of specialty-trained pharmacists and patient advocates to support patients with complex health conditions.
The goal of Walgreens Specialty Pharmacy is to provide comprehensive support to patients facing serious health challenges, chronic conditions, or complex therapies. The team of pharmacists and support staff will guide patients through their healthcare journey, assisting with medication ordering, financial assistance opportunities, and coordination with doctors and insurance plans to ensure the best possible care. The company’s focus on expanding its specialty pharmacy business demonstrates its commitment to meeting the evolving needs of patients and healthcare providers in the increasingly complex pharmaceutical landscape.
