The Kroger Co., one of the nation’s largest grocers, has announced an agreement to spin off its specialty pharmacy business to CarelonRx, a subsidiary of Elevance Health.
Kroger’s specialty pharmacy has operated since 2012 and offered complex and personalized care, side effect management and financial assistance to patients facing rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis and bleeding disorders. The unit is separate from the other pharmacy divisions under Kroger, and the company says in-store retail pharmacies and its brand of “Little Clinics” will not be included in the transaction.
"As part of our regular review of assets, it became clear that our strong specialty pharmacy business unit will better meet its full potential outside of our business,” says Colleen Lindholz, President of Kroger Health, in prepared remarks. “One of the most important considerations was continued operations to ensure minimal disruption to our associates and patients. We are confident this transaction will help the business to grow and deliver better results for patients."
Financial terms of the deal were not disclosed. It is expected to close in the second half of this year, subject to closing conditions and regulatory approval.
The move comes on the heels of another large acquisition by Elevance, who earlier this month announced the closing of a deal to acquire infusion therapy provider Paragon Healthcare in a deal rumored to be worth more than $1 billion.
Evan joined TriMed in 2011, writing primarily for Health Imaging. Prior to diving into medical journalism, Evan worked for the Nine Network of Public Media in St. Louis. He also has worked in public relations and education. Evan studied journalism at the University of Missouri, with an emphasis on broadcast media.