By Marie Rosenthal, MS
Walgreens is restructuring its specialty pharmacy services, introducing Walgreens Specialty Pharmacy, an independent specialty pharmacy that plans to expand access to care for patients with complex, chronic conditions and enable partnerships that drive profitability for Walgreens’ pharmacy business.
“We celebrate our independence as not being affiliated with a PBM [pharmacy benefit manger] and truly agnostic,” said Patrick Lupo, MBA, the group vice president of pharmacy trade and specialty, at a media briefing to announce the restructuring. “We see ourselves occupying the middle ground as an alternative to partner very differently with PBMs and health plans on payment and service models, so they can differentiate themselves and their member engagement.”
PBMs have been linked to high drug prices because they receive large financial rebates from more expensive medications (Mo Med 2023;120[4]:243-244). Mr. Lupo could not say whether this new structure would result in lower prices for patients, but stated that he hopes that will be the result.
“Walgreens does not set patient pricing or out-of-pocket costs. However, by developing and operating within alternative reimbursement models, our goal is to bring the total cost of care down so everyone can benefit—including patients,” he told Specialty Pharmacy Continuum.
“We offer an expansive selection of contracted payors, providing services or access to nearly all PBMs and major health plans,” he continued. “By opening more channels, we are helping to increase access to care and medications for patients.”
One of the new features that will make Walgreens unique is its investment in gene and cell therapies. The newly created Gene and Cell Services Pharmacy and Innovation Center is a dedicated 18,000-square-foot center in Pittsburgh that specializes in solutions for managing the complexity of the supply chain, logistics and financing, as well as clinical and social needs management.
In addition, Walgreens Specialty Pharmacy will offer:
• four central specialty pharmacies with expertise in oncology and rare/orphan conditions;
• nearly 300 community-based specialty pharmacies located near medical office buildings and health systems, which are intended to offer patients specialty medications more quickly than the industry average and provide services such as injection training, medication side effect management and financial assistance coordination;
• more than 1,500 specialty-trained pharmacists; and
• a roster of 240 limited distribution drugs that includes 12 exclusive limited distribution drugs.
“With approximately $24 billion in annual enterprise specialty revenue, Walgreens Specialty Pharmacy is the largest independent provider that offers the industry’s most robust specialty capabilities not vertically aligned with a pharmacy benefit manager,” said Rick Gates, RPhA the chief pharmacy officer at Walgreens, in a statement. He added that this allows Walgreens to have flexibility in contracting with payors; partner directly with pharmaceutical manufacturers to facilitate products to market, including limited distribution drugs; and coordinate with providers to help patients experience a smooth start to treatment.
The newly formed integrated care model means that, effective Aug. 1, AllianceRx Walgreens Pharmacy will become Walgreens Specialty Pharmacy. Patients of AllianceRx Walgreens Pharmacy and Walgreens community-based specialty pharmacies will have access to resources that include clinicians with disease state expertise, nutritionists and care nurses.
“We have the ability to leverage our local connections, both with patients, but also with providers, to make sure that we’re giving the best care and outcomes for patients,” Mr. Gates said at the briefing.
Specialty medications today account for more than 50% of prescription drug spending in the United States due to the increasing prevalence of chronic disease, according to the IQVIA Global Use of Medicines 2023.
Mr. Lupo said Walgreens will leverage its scale and “all the different touch points we have, as well as the relationships with providers in the communities we serve so that we can create convenient access to novel and complex specialty medications.”