Nonfood & Pharmacy
Kroger to Sell Its Specialty Pharmacy Business
Kroger to Sell Its Specialty Pharmacy Business to CarelonRX
Kroger has announced its decision to sell its specialty pharmacy business to CarelonRX, a subsidiary of Elevance Health, as part of a strategic realignment. The sale, revealed on Monday, will transfer the business that provides care to patients with chronic conditions such as rheumatoid arthritis, multiple sclerosis, growth hormone deficiencies, and bleeding disorders.
The specialty pharmacy business has been a part of Kroger since 2012, but the grocer indicated that it would be better positioned for growth outside of the company’s broader operations. Colleen Lindholz, president of Kroger Health, thanked the management team and associates for their ongoing commitment to patient care. She explained that, after a review of the company’s assets, it was clear that the specialty pharmacy division would achieve its full potential with a more focused and independent approach.
Kroger’s Strategy and Future Plans
Although Kroger’s sale of its specialty pharmacy business marks a major shift, the company clarified that its regular pharmacies and Little Clinic locations are not included in the deal. This move underscores Kroger’s continued focus on its in-store pharmacy and health services, which remain core components of its healthcare strategy. The grocer emphasized that one of the key factors in the sale was ensuring minimal disruption to both associates and patients during the transition.
Lindholz expressed confidence that the sale to CarelonRX would enable the specialty pharmacy business to thrive and deliver even better results for its patients. She also assured that the transition would be handled smoothly, with a focus on continuity for both employees and customers.
Merger with Albertsons and Regulatory Concerns
Interestingly, Kroger did not mention any connection between this sale and its ongoing $24.6 billion merger with Albertsons. While some industry analysts have speculated about potential links between the two moves, Kroger officials confirmed that the sale of its specialty pharmacy business was not directly related to the merger discussions.
The merger with Albertsons has faced significant regulatory challenges. The Federal Trade Commission (FTC), along with the attorneys general from nine states, filed a lawsuit earlier this year seeking to block the merger, claiming it would be anticompetitive. Additionally, officials in Colorado and Washington state have raised concerns that the deal could lead to pharmacy shortages, potentially resulting in the closure of hundreds of locations across both Kroger and Albertsons‘ networks.
Kroger’s sale of its specialty pharmacy division could represent part of a larger effort to streamline its operations and focus on core areas of growth amid ongoing scrutiny from regulators over its proposed merger with Albertsons.