Walgreens Boots Alliance Inc. said its Walgreen Co. unit is investing about $970 million to become majority owner of Shields, a Massachusetts-based specialty pharmacy care company.
Deerfield, Illinois-based Walgreens (Nasdaq: WBA) said after the investment, and along with a July 2019 investment, it will now own about 71% of the Stoughton-based company. Walgreens said the latest investment deal allows it to acquire all of Shields in the future.
Shields said it represents more than 1 million patients, has more than 65 health-system partners, and that its health system specialty pharmacy approach has led to a 13% reduction in total health-care costs for enrolled patients.
“We’re continuing to make strategic investments in pharmacy and healthcare solutions that can build on our core pharmacy business, and further expand our healthcare reach in communities. The Shields model has shown to improve patient care, and will be complementary to our existing specialty pharmacy offering, further expanding our capabilities to best meet the needs of health system partners and patients," said Roz Brewer, CEO of Walgreens Boots Alliance, in a statement. Brewer took over the Walgreens CEO position in March.
In July, Walgreens exceeded analysts' expectations in the third quarter and raised its fiscal year guidance. The pharmacy retailer reported adjusted third-quarter earnings of $1.51 per share, up from 83 cents per share a year earlier. Total revenue rose to $34 billion, up 10% from a year earlier.
