By Peter Melahn, Staff Writer

​Kroger officials announced that the company agreed to sell their in-house specialty pharmacy business to CarelonRx, the pharmacy services segment of Elevance Health’s health services division. The agreement, which was made on March 18, is expected to close in late 2024.

Terms of the deal were not immediately disclosed, but Kroger officials said that they did not expect the deal to have an effect on its full-year financial outlook. 

​Kroger’s specialty pharmacy is geared toward providing care for patients with long-term or chronic illnesses, such as rheumatoid arthritis or multiple sclerosis which demand specialized medication and complex care. The specialty pharmacy is not the main retail pharmacy through which most customers receive their care, and the agreement means that it will exist as a standalone entity. 

Speciality pharmacies are responsible for dispensing prescription medications for complex and chronic health conditions, and these prescriptions account for more than 50% of U.S. pharmaceutical spending according to the Department of Health and Human Services. They are also responsible for providing holistic services such as personalized care and side-effect management.

Kroger’s specialty pharmacy, which was previously in-house along with the main pharmacy, will now become a standalone segment with the sale to CarelonRx. In its announcement, the Kroger Company stated, “Kroger Specialty Pharmacy is separate from other Kroger Family of Pharmacies, including in-store retail pharmacies and The Little Clinics, and therefore in-store retail pharmacies and The Little Clinics are not included in this transaction.”

Kroger maintains that customers of the main in-store pharmacy should not expect to experience disruptions to typical services. Kroger pharmacy is a leading supplier of prescriptions and over-the-counter medications for many students at Xavier and much of the Cincinnati area. 

“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,” Colleen Lindholz, the president of Kroger Health, said in a statement.

The move comes amidst speculation that the Kroger Company is considering a merger with competitor Albertsons, headquartered in Boise, Idaho. The $24.6 billion deal, recently blocked by the Federal Trade Commission, whose task is to prevent monopolization, would result in the conglomeration of the two most valuable grocery companies in North America in terms of yearly sales. 

Antitrust officials fear that a merger of these influential retailers could put consumers at risk of higher grocery prices over time. Both retailers want to sell stores to make the deal more feasible. 

This potential merger comes amidst high levels of inflation in the U.S. of which consumer goods like groceries and pharmaceuticals have resulted in price level increases.

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