Cigna’s unit to invest $3.5 billion in specialty pharmacy firm Shields

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(Reuters) -U.S. health insurer Cigna Group unit Evernorth Health will invest $3.5 billion in Shields Health, the company said on Tuesday, bolstering its presence in the fast-growing specialty pharmacy business.

The investment comes as Shields transitions to a private company following the acquisition of its former parent, Walgreens Boots Alliance, by Sycamore Partners for $10 billion.

Specialty pharmacies sell medications that require extreme care in handling, storage and distribution, often for patients with complex conditions such as cancer, multiple sclerosis and rheumatoid arthritis.

Evernorth operates specialty pharmacy Accredo.

“Demand for specialty medications continues to grow at an accelerated pace, and Evernorth is uniquely positioned to serve the rapidly expanding number of individuals living with complex and chronic conditions and the doctors who care for them,” said Cigna CEO David Cordani.

The investment also provides the option for additional investment in Shields, Cigna said.

This is aligned with Cigna’s strategic priorities and focus on specialty pharmaceutical growth, said J.P. Morgan analyst Lisa Gill, adding there may be opportunities for the companies to partner going forward.

Shields supports hospitals and health systems in developing and managing their own specialty pharmacy programs.

The company partners with more than 80 health systems, encompassing more than 1,000 hospitals and clinics across nearly all 50 U.S. states.

Evernorth’s investment in Shields is in the form of preferred stock and is not expected to have a material impact on Cigna’s previously issued 2025 adjusted profit forecast, the company said.

(Reporting by Sriparna Roy in Bengaluru; Editing by Mrigank Dhaniwala and Sriraj Kalluvila)