Elevance Health to acquire Kroger Specialty Pharmacy

Elevance Health has inked a deal to acquire Kroger Specialty Pharmacy.

The grocery chain announced Monday that an agreement is in place, saying it's expected to close in the back half of 2024 pending regulatory approvals. Elevance intends to add Kroger Specialty Pharmacy to its CarelonRx business, which houses its pharmacy benefit management services.

Financial terms of the sale were not disclosed.

Kroger Specialty Pharmacy works with patients facing a wide array of chronic and complex conditions such as rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis and bleeding disorders. Patients are connected with a clinical team and therapy programs that offer education, side effect management, financial assistance, counseling, personalized care and more.

"Kroger Specialty Pharmacy has been part of our company since 2012, and we want to thank our management team and associates for their enduring commitment to their patients," said Colleen Lindholz, president of Kroger Health, in the press release.

"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," Lindholz said. "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. We look forward to working toward a smooth transition for associates and patients."

The retailer noted that the specialty pharmacy arm is separate from Kroger's in-store retail pharmacies and Little Clinic locations, which are not included in the deal.

Kroger and Elevance Health have an existing partnership, joining forces to launch co-branded Medicare Advantage plans in 2021.

Elevance also announced earlier this month that it has closed a deal to acquire infusions services provider Paragon Healthcare.