The Kroger Co. (NYSE: KR) has announced the signing of a definitive agreement for the sale of its specialty pharmacy business to CarelonRx, a subsidiary of Elevance Health.
“Kroger Specialty Pharmacy has been an integral part of our company since 2012, and we extend our gratitude to our management team and associates for their steadfast dedication to their patients,” stated Colleen Lindholz, President of Kroger Health.
“Upon reviewing our assets, it became evident that our robust specialty pharmacy business unit could reach its full potential outside of our organization. One of our primary concerns was ensuring continued operations to minimize disruption for our associates and patients.
We are confident that this transaction will facilitate the business’s growth and yield better outcomes for patients. We are committed to facilitating a seamless transition for our associates and patients.”
The retailer’s specialty pharmacy caters to patients with chronic illnesses requiring complex care. Through skilled clinicians and comprehensive therapy programs, patients and prescribers benefit from education, counseling, side effect management, financial assistance, personalized care, and administrative support.
The specialty pharmacy business caters to patients grappling with ailments such as rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis, and bleeding disorders.
It’s important to note that Kroger Specialty Pharmacy operates independently from other Kroger Family of Pharmacies, which include in-store retail pharmacies and The Little Clinics. Consequently, in-store retail pharmacies and The Little Clinics are not part of this transaction.
The completion of this transaction is contingent upon customary closing conditions, including regulatory approvals, and is anticipated to conclude in the latter half of 2024. It is not expected to impact Kroger’s 2024 guidance.
