Walgreens Launches Gene and Cell Services as Part of Newly Integrated Walgreens Specialty Pharmacy Business
- Walgreens is investing in expanding its specialty pharmacy services to enhance patient outcomes and drive profitability.
- The introduction of Walgreens Specialty Pharmacy includes the launch of Gene & Cell Services Pharmacy and Innovation Center.
- The company has more than 1,500 specialty-trained pharmacists and 5,000 patient advocacy support team members to support specialty conditions and therapies.
- Walgreens is strategically located near medical office buildings and health systems to provide patients with faster access to specialty medications and services like injection training, medication side-effect management, and financial assistance coordination.
- The company is focused on breaking through healthcare system silos to help payers better manage specialty costs and provide comprehensive care.
- Specialty medications account for over 50% of prescription drug spend in the U.S., making it a significant market segment for Walgreens Specialty Pharmacy.
- Walgreens is the largest independent provider of specialty pharmacy services with robust capabilities, offering integrated care models to drive cost savings and efficiencies in care.
- The launch of Walgreens Specialty Pharmacy is part of the company's efforts to expand its pharmacy teams' role in patients' lives and achieve provider status for its pharmacists.
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Insights
Walgreens' integration of gene and cell therapy services into its specialty pharmacy offerings is a strategic move to capitalize on a niche but rapidly expanding segment of the healthcare market. The addition of a dedicated Innovation Center and the focus on complex supply chain and logistics management will be critical in ensuring the timely and effective distribution of these specialized treatments, which often have unique storage and handling requirements.
Moreover, the pharmaceutical industry has been witnessing substantial growth in specialty medications, usually associated with higher costs due to their targeted nature and complex manufacturing processes. Walgreens’ positioning itself as a comprehensive provider, with the backing of a robust distribution network, aligns with the trend of retail pharmacies expanding their services beyond traditional dispensing. This expansion could lead to increased market share and a stronger position in contracting with health plans and PBMs, which is often a competitive differentiator in the specialty pharmacy sector.
The growth forecast for gene and cell therapies suggests that Walgreens could benefit from early investments in this area. However, managing the intricacies of these therapies, from personalized medicine to just-in-time delivery models, will be pivotal to their success. As they expand access to rare disease and oncology treatments, they might encounter challenges related to reimbursement, regulatory compliance and aligning with health systems' care models.
Walgreens reports an annual enterprise specialty revenue of around
In terms of cost management, the ability to offer a range of services from a single entity could lead to operational efficiencies and potential cost savings for both Walgreens and its partners. Their ability to contract with any payer due to their independence from a pharmacy benefit manager might offer a competitive pricing advantage, which could lead to increased profitability.
The long-term implications for stakeholders include the potential to command a dominant share in the specialty pharmacy market, diversifying income streams and reinforcing customer loyalty by enhancing the care model. However, it will be important to monitor how these strategic moves affect Walgreens' profit margins, given the initial investment costs and the ongoing expense of managing complex therapies.
The healthcare landscape is increasingly focused on integrated care models, which aim to streamline patient treatment and improve outcomes. Walgreens’ move to integrate its pharmacy services, particularly in the gene and cell therapy space, is aligned with this trend and could set a precedent for other pharmacy chains.
From a regulatory standpoint, providing services for complex medications requires adherence to stringent standards. The accreditations held by Walgreens' central specialty pharmacies show their commitment to regulatory compliance, which is essential when handling medications for chronic or rare diseases. The regulatory environment for gene and cell therapies is particularly challenging due to the novelty and rapid evolution of the field. Walgreens’ investment in their pharmacies' capabilities, including the management of these treatments, indicates foresight into the regulatory roadmap of personalized medicine.
For patients and providers, the streamlined access to specialty medications and Walgreens' efforts to achieve provider status for pharmacists could have significant implications for healthcare delivery. Coordinated care is often required for complex conditions and reducing barriers through an integrated pharmacy model may improve treatment adherence and patient outcomes. However, it will be important to ensure that the expanded services do not compromise patient safety or privacy, particularly given the sensitive nature of genetic and cell-based therapies.
- Walgreens Specialty Pharmacy combines existing specialty assets, fully integrates AllianceRx and represents the company’s latest step to leverage its neighborhood pharmacies into fast-growing areas of healthcare
- Investments include new Gene & Cell Services Pharmacy and Innovation Center
Walgreens Specialty Pharmacy has more than 1,500 specialty-trained pharmacists, 5,000 patient advocacy support team members and ten dedicated Specialty360 teams that support all specialty conditions and therapies. (Photo: Business Wire)
Under the new business, Walgreens Specialty Pharmacy has an unmatched offering and is the only specialty pharmacy in the market with the following services and assets at scale:
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Gene and Cell Services Pharmacy and Innovation Center – a dedicated 18,000-square-foot center in
Pittsburgh, PA , with services and capabilities for these emerging therapies, including innovative solutions for managing the complexity of the supply chain, logistics and financing as well as clinical and social needs management to ensure success for patients and partners. - Four central specialty pharmacies – each holding several national pharmacy accreditations – where pharmacists and care teams across the country work together to dispense highly complex medications and help patients manage chronic or rare diseases and conditions. These pharmacies hold distinctions in oncology and rare/orphan conditions and offer patients and caregivers clinical services that drive engagement, adherence and outcomes.
- Nearly 300 community-based specialty pharmacies across the nation – more than any other pharmacy. These specialty pharmacies are strategically located near medical office buildings and health systems, closely aligning care provision with local physicians, offering patients access to specialty medications faster than the industry average, as well as services like injection training, medication side-effect management and financial assistance coordination for medications.
- More than 1,500 specialty-trained pharmacists, 5,000 patient advocacy support team members and dedicated Specialty360 teams that support all specialty condition and therapies.
- A growing roster of 240 limited distribution drugs, including 40 narrow networks and 12 exclusive limited distribution drugs.
Walgreens Specialty Pharmacy is focused on breaking through healthcare system silos, bringing convenient access to hard-to-find medications and critical adherence support. Building upon the deep, trusted relationships Walgreens pharmacists have with providers and communities, the model enables more comprehensive care to ultimately help payers better manage specialty costs.
Accelerating Walgreens growth in one of the fastest-growing market segments
Specialty medications today account for more than
“With approximately
Walgreens is building on its decades of experience serving the specialty pharmacy needs of commercial, Medicaid, Medicare, and other government and private payers. The company provides services or access to nearly all pharmacy benefit managers and major health plans— as well as alternative payment and service models that help health plans and PBMs differentiate themselves for their clients and members.
Delivering an integrated care model to patients who need it most
Effective August 1, 2024, AllianceRx Walgreens Pharmacy will become Walgreens Specialty Pharmacy. Patients of AllianceRx Walgreens Pharmacy and Walgreens community-based specialty pharmacies now have access to resources that will build upon the expert care they already receive from their specialty pharmacist, including clinicians with key disease state expertise, nutritionists and care nurses. Specialty patients can also view their entire prescription profile at Walgreens, including their retail prescriptions.
“When a patient must confront a life-changing, serious health challenge and begins therapy for a chronic or complex condition, our pharmacists are right there to guide and care for them throughout their healthcare journey —from helping them order and take their medication to identifying financial assistance opportunities and working with their doctor and insurance plan to make sure they’re receiving the most coordinated care,” Gates said.
In addition, Walgreens has seen consistent growth through its wholly owned subsidiary Shields Health Solutions, the nation’s premier health system-owned specialty pharmacy accelerator. Shields specialty model provides integrated care solutions for local health systems and specialty pharmacy patients, working with over 1,000 hospitals across 45 states. The Shields business will continue supporting health systems specialty pharmacies, which complement Walgreens newly enhanced specialty pharmacy offerings.
The launch of Walgreens Specialty Pharmacy is the company’s latest initiative aimed at expanding the role its pharmacy teams play in patients’ lives and bringing their clinical expertise to help payers, providers, pharmaceutical manufacturers and partners deliver critical healthcare. It also further supports Walgreens' efforts to achieve provider status for its pharmacists given their influence and integral role in healthcare delivery.
[1] IQVIA. Global Use of Medicines 2023. https://www.iqvia.com/insights/the-iqvia-institute/reports-and-publications/reports/the-global-use-of-medicines-2023
About Walgreens Specialty Pharmacy
Walgreens Specialty Pharmacy holds several national pharmacy accreditations and services are offered to nearly 300 million covered lives across the country. At Walgreens, the term “specialty” covers services and medications for patients with rare, complex and chronic diseases like cancer, cystic fibrosis and Crohn’s disease, who often require additional support from their healthcare providers. Walgreens specialty pharmacists have additional training to better understand these specialty medications which have unique storage, temperature, and handling requirements; are given by infusion, injection or taken orally; and require close patient monitoring and ongoing clinical support. They also help patients find affordable access to high-cost medications, help with adherence barriers and support patients throughout their treatment.
About Walgreens
Walgreens (www.walgreens.com) is included in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424326589/en/
Erin Loverher
Walgreens Media Relations
media@walgreens.com
Source: Walgreens
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