On Monday, The Kroger Company KR inked a definitive deal to sell its specialty pharmacy business to CarelonRx, a subsidiary of Elevance Health, Inc. ELV, for an undisclosed amount.
Kroger’s in-store retail pharmacies and The Little Clinics are not included in this transaction as Kroger Specialty Pharmacy is separate from other Kroger Family of Pharmacies.
The retailer’s specialty pharmacy serves patients with chronic illnesses requiring complex care. The specialty pharmacy business supports patients facing diseases including rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis, and bleeding disorders.
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Colleen Lindholz, President of Kroger Health, said, “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. One of the most important considerations was continued operations to ensure minimal disruption to our associates and patients.”
The deal is not expected to have an impact on Kroger’s 2024 guidance. This transaction is expected to close in the second half of 2024, which is subject to customary closing conditions.
Earlier this month, Kroger reported fourth-quarter FY23 sales growth of 6.4% year-on-year to $37.064 billion, slightly missing the analyst consensus estimate of $37.112 billion, and adjusted EPS beat the consensus estimate of $1.13.
Price Action: KR shares are trading higher by 0.66% at $56.56 on the last check Tuesday.
Photo via Wikimedia Commons
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