Walgreens has announced that it will be working directly with drugmakers to provide cell and gene therapies to patients in the United States. This move is part of a broader expansion of their specialty pharmacy services. The company is introducing a new business unit dedicated to the specialty pharmacy segment, which will include their specialty pharmacy subsidiary, AllianceRx. This unit will be under the core U.S. retail pharmacy division, while Shields Health Solutions, a subsidiary supporting health system-owned specialty pharmacies, will remain under Walgreens’s U.S. health-care division.
Specialty pharmacies have become increasingly important in the U.S. health system, especially as chronic diseases become more prevalent. These pharmacies provide medications that require extreme care in handling, storage, and distribution. They cater to patients with chronic, rare, or complex conditions such as cancer, Crohn’s disease, and HIV. In addition to providing specialized medications, these pharmacies also offer counseling and financial assistance to support patients undergoing costly treatments.
As part of their efforts to transform their specialty pharmacy services, Walgreens will be opening a newly licensed facility in Pittsburgh dedicated to services for cell and gene therapies. This 18,000-square-foot center will assist drugmakers and health-care providers in navigating the complex supply chain for these treatments and managing patient needs. The decision to offer cell and gene therapy services comes in response to a surge in approvals of these drugs in the U.S. and the European Union over the past year. Cell and gene therapies are one-time, high-cost treatments that target a patient’s genetic source or cell to cure or significantly alter the course of a disease. Some health experts predict that these therapies will eventually replace traditional lifelong treatments for chronic diseases.
Growth of Cell and Gene Therapies
The U.S. Food and Drug Administration approved seven cell and gene therapies last year, including the first gene therapies for sickle cell disease. The market for these treatments is expected to grow further, with the FDA anticipating that it will review and approve between 10 and 20 cell and gene therapies annually by 2025. Walgreens has positioned itself as the largest independent provider of specialty pharmacy services, generating approximately $24 billion in revenue from this segment. Notably, Walgreens’s Specialty Pharmacy business is not partnered with a pharmacy benefit manager, allowing the company to contract dynamically with any payer.
Enhancing Patient Care
With the launch of the new business unit, patients of AllianceRx and Walgreens’s nearly 300 community-based pharmacies will have access to resources aimed at improving their care. These resources include clinicians with disease expertise, nutritionists, and nurses. The company’s community-based specialty pharmacies, conveniently located near medical facilities, offer specialty drugs quicker than the industry average, along with services such as injection training and side-effect management. Walgreens boasts over 1,500 specialty pharmacists, 5,000 patient-advocacy support team members, and numerous dedicated specialty pharmacy teams. They offer a wide range of specialty drugs, including 240 “limited distribution” drugs that are not readily available at most specialty pharmacies.
Walgreens’s initiative to offer cell and gene therapies directly to patients marks a significant step in expanding their specialty pharmacy services. By partnering with drugmakers and investing in dedicated facilities, the company is poised to meet the growing demand for specialized treatments and provide enhanced care to patients with complex medical conditions.