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Walgreens makes $970 million investment in specialty pharmacy company Shields Health By Reuters


© Reuters. FILEPHOTO: This Walgreens is seen in Chicago Illinois on February 11, 2021. REUTERS/Eileen T. Meslar/File Photo

(Reuters) – Walgreens Boots Alliance (NASDAQ:) is spending roughly $970 million to acquire a majority stake in Shields Health Solutions to expand its specialty pharmacy business, the companies said on Tuesday.

Walgreens now has 71% of Shields and can purchase the remainder equity shares in the future. This Illinois-based company previously held a minority stake in Shields.

Shields Health Solutions, which was established in 2012 to provide specialist pharmacy services for hospitals, is now a minority stake.

The specialty pharmacy is designed for the delivery of medications that have special storage, distribution, and handling requirements. This can be useful when treating patients suffering from complex conditions like multiple sclerosis, cancer, or rheumatoid.

We are continuing to invest in strategic pharmacy and healthcare solutions which can enhance our core pharmacy businesses. Roz Brewer, chief executive officer of Shields, stated in a statement that it has been proven to enhance patient care. It will also complement our existing specialty pharmacies offering.

It is anticipated that the transaction will close before the end of fiscal year 2022. The first full-year after its completion is predicted to see modest accretion.

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