Kroger plans to sell its specialty pharmacy services arm to CarelonRx, a subsidiary of Elevance Health, the retailer announced Monday.
Kroger and CarelonRx entered a definitive agreement following recent reports from Kroger detailing a reduction in pharmacy sales. The transaction is expected to close in the second half of 2024, subject to regulatory approvals and closing conditions, but financial terms were not disclosed. Kroger and CarelonRx did not immediately respond to requests for comment.
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Kroger’s in-store retail pharmacies and walk-in clinics, which treat minor patient illnesses and injuries, are not included in the deal with CarelonRx.
"As part of our regular review of assets, it became clear that our strong specialty pharmacy business unit will better meet its full potential outside of our business,” said Colleen Lindholz, president of Kroger Health, in a Monday news release. “We are confident this transaction will help the business to grow and deliver better results for patients. We look forward to working toward a smooth transition for associates and patients."
Kroger Specialty Pharmacy, established in 2012, provides clinical care, resources and counseling for patients with chronic illnesses. The pharmacy business specializes in serving patients nationwide with diseases including rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis and bleeding disorders.
In a March financial report, Kroger said it lost some pharmacy-related revenue throughout 2023 following the termination of its agreement with Express Scripts. The company also reported losing revenue in 2022 due to discontinued patient therapies at Kroger Specialty Pharmacy.
Recently, Kroger announced its intention to focus on senior primary care in eight of its Atlanta clinics, in addition to their regular services.