Walgreens Boots Alliance (WBA.O) said on Tuesday it would buy the remaining stake in specialty pharmacy company Shields Health Solutions for $1.37 billion.
Walgreens last year spent $970 million to increase its stake in the company to 71%, with an option to acquire remaining equity interests in the future.
Specialty pharmacies are designed to deliver medications with unique handling, storage and distribution requirements, often for patients with complex conditions such as cancer, multiple sclerosis and rheumatoid arthritis.
Founded in 2012, Shields Health Solutions helps hospitals provide specialty pharmacy services.
Walgreens has been seeking to shift its focus beyond drugstores, and last year it raised its stake in primary care provider VillageMD to 63%.
The specialty pharmacy M&A markets continue to flourish as major national, regional and local specialty pharmacies accelerate transactions in the expanding market for specialty pharmaceuticals. With the emerging profit drivers including non-biologic specialty generic drugs, white bagging, copay maximizers and accumulators and other trends within the sector continue to deliver increased margins and attractive acquisition opportunities.
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