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Walgreens expands specialty pharmacy business to gene and cell therapy services
April 29, 2024
Walgreens announced Thursday that it's expanding its specialty pharmacy services to offer gene and cell therapy services, in effect creating the largest independent provider of specialty pharmacy services. (Loverher, 2024, Constantino, 2024)
Beginning August 1, the drugstore chain will launch Walgreens Specialty Pharmacy, a $24 billion business that integrates a new pharmacy equipped to handle gene and cell therapies with its existing pharmacy assets, including its large specialty pharmacy and home delivery business, AllianceRx. (Constantino, 2024)
Walgreens Specialty Pharmacy will include a Gene and Cell Services Pharmacy and Innovation Center, an 18,000-square-foot facility in Pittsburgh “with services and capabilities for these emerging therapies, including innovative solutions for managing the complexity of the supply chain, logistics and financing as well as clinical and social needs management to ensure success for patients and partners,” the company said. (Loverher, 2024)
The company notes that its integrated model enables it to work with payers, health plans and pharma with a specialty pharmacy offering independent of pharmacy benefit managers (PBMs). (Loverher, 2024, Constantino, 2024)
Under the new unit, four central specialty pharmacies specializing in oncology and rare/orphan conditions will serve as hubs where pharmacists and care teams across the country will work together to dispense highly complex medications and help patients manage chronic or rare diseases and conditions. (Loveher, 2024)
Patients of AllianceRx and the company’s nearly 300 community-based specialty pharmacies will now have access to resources—including clinicians with key disease expertise, nutritionists, and nurses—that will “build upon the expert care they already receive from their specialty pharmacist,” according to Walgreens. With its community-based specialty pharmacies located near medical office buildings and health systems, the drugstore chain says it can offer specialty drugs “faster than industry average” along with services such as injection training and side-effect management. (Loveher, 2024; Constantino, 2024)
Shields Health Solutions, the specialty pharmacy business Walgreens acquired a majority of three years ago, will remain a part of Walgreens healthcare segment, supporting providers of medical care. Shields works with hospitals and health systems to set up and run their own on-site specialty pharmacies. (Constantino, 2024)
Specialty pharmacies are an increasingly important player in the U.S. health system—especially as chronic diseases become more prevalent and costly drugs derived from biotechnology become more common. (Jaspen, 2024; Constantino, 2024)
Specialty medications are often for patients with chronic, rare or complex conditions such as cancer, Crohn’s disease and HIV and require extreme care in handling, storage and distribution. Although such medications represent only 1% to 2% of a typical employer’s overall prescription volume, they account for approximately 50% of total annual pharmacy spend, according to the employee benefit consultancy Mercer. (Jaspen, 2024; Constantino, 2024)
Sources:
Jaspen, Bruce. (2024, April 25). Forbes. Walgreens To Launch $24 Billion Business Dedicated to Specialty Pharmacy. https://www.forbes.com/sites/brucejapsen/2024/04/25/walgreens-to-launch-24-billion-business-dedicated-to-specialty-pharmacy/?sh=1ed1043e2094
Loverher, Erin. (2024, April 25). Walgreens Boots Alliance. Walgreen Launches Gene and Cell Services as Part of Newly Integrated Walgreens Specialty Pharmacy Business. https://www.walgreensbootsalliance.com/news-media/press-releases/2024/walgreens-gene-and-cell-services-specialty-pharmacy
Constantino, Annika Kim. (2024, April 25). CNBC. Walgreens to help bring cell and gene therapies to patients as it expands specialty pharmacy services. https://www.cnbc.com/2024/04/25/walgreens-launches-cell-gene-therapies-in-service-expansion.html
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