Walgreens announced on Thursday its intention to collaborate directly with pharmaceutical manufacturers to introduce cell and gene therapies to patients in the United States, as part of an extensive expansion of its specialty pharmacy services.
As part of this initiative, the company revealed the establishment of a new division focused on its specialty pharmacy segment, incorporating the subsidiary AllianceRx. This division will be integrated into its primary U.S. retail pharmacy arm. Meanwhile, Shields Health Solutions, a subsidiary supporting health system-owned specialty pharmacies, will remain under the umbrella of Walgreens's U.S. healthcare division.
Specialty pharmacies have emerged as significant players within the U.S. healthcare system, particularly with the rise in chronic diseases.
These pharmacies supply medications that demand meticulous care in handling, storage, and distribution, catering primarily to patients with chronic, rare, or intricate conditions such as cancer, Crohn’s disease, and HIV. In addition to dispensing medications, specialty pharmacies offer counseling and financial aid tailored to assist patients undergoing expensive treatments.
As part of its efforts to "revolutionize" its specialty pharmacy services, Walgreens will inaugurate a newly licensed facility in Pittsburgh dedicated to services for cell and gene therapies. Spanning 18,000 square feet, this center aims to facilitate drugmakers and healthcare providers in navigating the intricate supply chain for these treatments and addressing patient needs, among other challenges.
Walgreens' decision to venture into cell and gene therapy services follows a surge in approvals for such drugs in the U.S. and the European Union over the past year. These therapies, characterized by their one-time administration and high cost, target a patient’s genetic source or cells to either cure or significantly alter the course of a disease. Some experts anticipate that cell and gene therapies will eventually supplant traditional lifelong treatments for managing chronic diseases.
Last year, the U.S. Food and Drug Administration granted approval for seven cell and gene therapies, including the inaugural gene therapies for sickle cell disease. This market is projected to expand further, with the FDA estimating that it will review and approve between 10 and 20 cell and gene therapies annually by 2025.
Walgreens stated that its newly established business unit is the largest independent provider of specialty pharmacy services, generating approximately $24 billion in revenue from this segment. Notably, Walgreens Specialty Pharmacy business operates autonomously from a pharmacy benefit manager, affording the company flexibility in dynamically engaging with any payer. According to Walgreens Chief Pharmacy Officer Rick Gates, this setup enables direct partnerships with pharmaceutical manufacturers to expedite product availability, including limited distribution drugs, and ensures seamless treatment initiation in collaboration with healthcare providers.
Under the new unit, patients serviced by AllianceRx and the company’s nearly 300 community-based pharmacies will gain access to enhanced resources to augment the expert care provided by their specialty pharmacists. These resources include clinicians specializing in key diseases, nutritionists, and nurses.
Walgreens emphasized that its community-based specialty pharmacies are strategically positioned near medical office buildings and health systems, enabling them to dispense specialty drugs faster than the industry average, in addition to providing ancillary services such as injection training and side-effect management.
The company boasts a workforce of over 1,500 specialty pharmacists, supported by 5,000 patient-advocacy support team members and an undisclosed number of dedicated specialty pharmacy teams.
Moreover, Walgreens offers an extensive range of more than 1,300 specialty drugs, including 240 "limited distribution" drugs that are typically inaccessible to most specialty pharmacies.
