Pharmacy operator Walgreens Boots Alliance (WBA) yesterday formed a $1bn strategic partnership agreement with US-based primary care provider VillageMD that included an initial investment of $250m.
The $1bn figure will consist of an undisclosed mix of equity and convertible debt financing that will be provided over the next three years. The $250m equity investment represents the first instalment and WBA will own a 30% stake in VillageMD once the debt has been converted into equity.
Founded in 2013, VillageMD runs a nationwide network of primary care services providers called Village Medical. It has partnered more than 2,800 physicians to date, with some 600,000 patients under their care.
The partnership will enable WBA to offer full-service doctor offices at its pharmacies. It plans to launch them in 500 to 700 facilities across more than 30 markets over the next five years, before adding hundreds more in the years afterwards.
VillageMD will be responsible for recruiting more than 3,600 physicians to operate the outlets and will integrate Walgreens into its healthcare service.
The clinics will accept a wide range of insurance policies and will offer a round-the-clock service that will incoprorate telehealth and at-home visits. WBA and VillageMD had already teamed up on a telehealth service that is offered through Walgreens’ online platform.
VillageMD had previously raised $100m in a September 2019 series B round led by investment firm Kinnevik that included Oak HC/FT, Town Hall Ventures and Adams Street Partners.
Athyrium Capital Management led an $80m round for the company in January 2018, three years after Oak HC/FT led its $36m series A round, participating alongside undisclosed new and existing investors.
