Walgreens recently made an announcement that it will be venturing into the world of cell and gene therapies in the United States. This move is part of the company’s strategy to expand its specialty pharmacy services. The company will be working directly with drugmakers to bring these innovative therapies to patients.
The establishment of a new business unit dedicated to the specialty pharmacy segment marks a significant step for Walgreens. This unit will include the specialty pharmacy subsidiary, AllianceRx, and will fall under the core U.S. retail pharmacy division of the company. Shields Health Solutions, another subsidiary that supports health system-owned specialty pharmacies, will remain under the U.S. health-care division of Walgreens.
Specialty pharmacies have become increasingly important in the U.S. healthcare system, particularly with the rise of chronic diseases. These pharmacies provide medications that require special care in handling, storage, and distribution. The treatments offered are typically for patients with chronic, rare, or complex conditions such as cancer, Crohn’s disease, and HIV. Specialty pharmacies also provide counseling and financial assistance to support patients in taking these costly treatments.
Walgreens has made substantial investments to enhance its specialty pharmacy services. One of the key initiatives is the opening of a licensed facility in Pittsburgh focused on cell and gene therapies. This 18,000-square-foot center will help drugmakers and healthcare providers navigate the complex supply chain for these treatments and manage patient needs effectively.
Cell and Gene Therapies
With the growing number of approvals for cell and gene therapies in the U.S. and the European Union, Walgreens’ decision to launch these services is timely. These therapies are one-time, high-cost treatments that target genetic sources or cells to cure or significantly alter the course of diseases. Experts predict that cell and gene therapies may eventually replace traditional lifelong treatments for chronic diseases.
Walgreens’ newly launched business unit is now the largest independent provider of specialty pharmacy services, generating approximately $24 billion in revenue from this segment. Notably, Walgreens Specialty Pharmacy business is not affiliated with a pharmacy benefit manager, offering the company flexibility in contracting dynamically with any payer. This approach allows Walgreens to partner directly with pharmaceutical manufacturers and ensure a seamless treatment experience for patients.
Under the new unit, patients of AllianceRx and the company’s community-based pharmacies will have access to additional resources. These resources include clinicians with key disease expertise, nutritionists, nurses, and dedicated specialty pharmacy teams. Walgreens’ community-based specialty pharmacies, strategically located near medical office buildings and health systems, offer faster access to specialty drugs and services such as injection training and side-effect management.
Walgreens’ expansion of specialty pharmacy services to include cell and gene therapies represents a significant advancement in the healthcare industry. With a focus on providing innovative treatments for chronic conditions, Walgreens aims to enhance patient care and support. This strategic move positions the company as a leader in the specialty pharmacy sector and demonstrates its commitment to meeting the evolving needs of patients and healthcare providers.