Kroger Passes The Baton: Sells Specialty Pharmacy Division To CarelonRx
Portfolio Pulse from Lekha Gupta
The Kroger Company (NYSE:KR) has agreed to sell its specialty pharmacy business to CarelonRx, a subsidiary of Elevance Health, Inc. (NYSE:ELV), for an undisclosed amount. The deal excludes Kroger's in-store retail pharmacies and The Little Clinics. This transaction, expected to close in the second half of 2024, is not anticipated to affect Kroger's 2024 guidance. Kroger's specialty pharmacy caters to patients with chronic illnesses requiring complex care. The sale is part of Kroger's asset review strategy to optimize its business units.
March 19, 2024 | 4:18 pm
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NEUTRAL IMPACT
Kroger sells its specialty pharmacy business to CarelonRx, a move that aligns with its asset optimization strategy. The transaction is not expected to impact its 2024 financial guidance.
The sale of Kroger's specialty pharmacy business to CarelonRx is a strategic move, but since it's not expected to impact Kroger's 2024 financial guidance, the short-term impact on KR's stock price is likely neutral. The deal reflects Kroger's focus on optimizing its asset portfolio, which could be positive in the long term, but immediate financial implications seem minimal.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
POSITIVE IMPACT
Elevance Health, Inc., through its subsidiary CarelonRx, acquires Kroger's specialty pharmacy business, expanding its healthcare services portfolio.
Elevance Health's acquisition of Kroger's specialty pharmacy business through CarelonRx could positively impact ELV's stock in the short term by expanding its healthcare services portfolio. This strategic acquisition aligns with Elevance Health's growth objectives in the healthcare sector, potentially enhancing its market position and service offerings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80