Private Equity Firm Sycamore Partners Snaps Up Strained Walgreens For $10B
As part of the deal, which will be completed later this year, the Chicago-based pharmacy chain will sell its VillageMD unit. Other pharmaceutical news is about Cost Plus Drug Co., Eli Lilly, and more.
The New York Times:
Walgreens to Be Bought by Private Equity Firm in $10 Billion Deal
Walgreens Boots Alliance said on Thursday that it had agreed to be acquired by Sycamore Partners, a private equity firm, in a $10 billion deal that will take the struggling pharmacy chain out of the glare of public markets. Walgreens has faced declining prescription reimbursements and falling sales at its retail locations for years — a trend that has hit a number of major pharmacy chains. After rapidly expanding their brick-and-mortar footprint, pharmacy companies now say it’s harder to turn a profit from selling prescriptions, citing pressure from middlemen. (Kaye, 3/6)
MarketWatch:
Here’s When Walgreens Will Go Private After Its $10 Billion Private-Equity Buyout
The company’s Walgreens and Boots units will continue to operate, as will its portfolio of consumer brands, and WBA will keep its headquarters in Chicago. The company intends to sell its VillageMD unit, which includes the Village Medical, Summit Health and CityMD businesses. The deal is expected to close in the fourth quarter of 2025. Upon its completion, Walgreens will become a private company and its stock will no longer be listed on the Nasdaq. (Murphy, 3/6)
In other pharmaceutical news —
Modern Healthcare:
Mark Cuban Cost Plus Drug Co. Clients Report Promising Savings
Providers, insurers, employers and patients grappling with steep drug costs are testing an unconventional model to rein in spending, and early signs indicate it may be working. The Mark Cuban Cost Plus Drug Co., named after its billionaire co-founder and also known as Cost Plus Drugs, has taken on the roles of online pharmacy, pharmaceutical manufacturer and drug wholesaler in a bid to disrupt the healthcare industry. (Berryman, 3/6)
FiercePharma:
Want A Piece Of Lilly's $27B US Manufacturing Investment? Please Send Your Application
Eli Lilly wants the most optimal locations to host its new manufacturing facilities in the U.S.—and it’s open to pitches. The Indianapolis pharma has established an online portal to accept submissions for possible locations of four future U.S. manufacturing sites. (Liu, 3/5)
The Hill:
Court: Compounding Pharmacies Must Stop Making Copies Of Zepbound, Mounjaro
A federal judge has effectively ended the ability of compounding pharmacies to make their own copies of Eli Lilly’s weight loss and diabetes drugs Zepbound and Mounjaro. In a sealed decision filed late Wednesday, Judge Mark Pittman of the Northern District of Texas declined to issue an injunction to stop the Food and Drug Administration (FDA) from declaring there was no longer a shortage of the medicines’ active ingredient, tirzepatide. (Weixel, 3/6)
Modern Healthcare:
Teladoc, LifeMD Partner With Eli Lilly On GLP-1s
Teladoc and LifeMD are partnering with drugmaker Eli Lilly to offer the weight loss drug Zepbound directly to self-paying patients. The two telehealth companies said Thursday they’re working with Gifthealth, which is the pharmacy partner of Eli Lilly’s direct-pay, direct-to-consumer website LillyDirect. Their telehealth platforms will be integrated into LillyDirect, allowing patients to get a prescription to Zepbound through the two companies’ providers. (Perna, 3/6)
