Kroger to sell specialty pharmacy business to Elevance subsidiary
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Cincinnati-based The Kroger Co. is selling its specialty pharmacy business to CarelonRx, a subsidiary of Elevance Health in Indianapolis, the grocery retailer announced Monday. Financial terms of the deal were not disclosed.
The specialty pharmacy business serves patients with chronic illness that requires complex care, Kroger said, including rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis and bleeding disorders.
Kroger Health President Colleen Lindholz said in a news release said the company made the decision to sell the business after a regular review of its assets, noting the business would better meet its full potential outside of the company.
“One of the most important considerations was continued operations to ensure minimal disruption to our associates and patients,” Lindholz said. “We are confident this transaction will help the business to grow and deliver better results for patients.”
CarelonRx is a pharmacy benefit manager established by Elevance, previously known as Anthem, in 2019. A request for comment from the company was not immediately returned.
Kroger said the specialty pharmacy business is separate from its in-store retail pharmacies and The Little Clinics, which are not included in the proposed sale.
The sale is expected to close in the second half of 2024, pending regulatory approvals and customary closing conditions.
The deal comes as Kroger continues its proposed $24.6 billion acquisition of Boise, Idaho-based Albertsons Companies Inc. The process remains stalled following a lawsuit filed last month by the Federal Trade Commission seeking to block the deal, which it says is anticompetitive.
Kroger has said that blocking the deal would “actually harm the very people the FTC purports to serve: America’s consumers and workers.”
Related: What’s next in FTC lawsuit seeking to block Kroger-Albertsons merger
A preliminary injunction hearing for the FTC lawsuit is set to begin on Aug. 26 in Portland, Oregon.