A robotic, not a human pharmacist, could also be filling your prescription at Walgreens. And there is about to be much more of them.
Walgreens instructed CNBC on Sunday that it desires to have extra of its pharmacies ship prescriptions to certainly one of its 11 micro-fulfillment facilities, or hubs that use robotic expertise to fill affected person prescriptions.
The purpose is to have the amenities deal with prescriptions for five,000 pharmacies earlier than the yr ends, up from 4,800 shops in February and 4,300 shops in October 2023.
As of February, the facilities took care of 40% of prescriptions for supported pharmacies, amounting to 16 million orders stuffed every month.
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The transfer to develop automation arrives as Walgreens readies itself to go non-public in a $10 billion deal. The pharmacy chain introduced in March that it had agreed to be acquired by non-public fairness agency Sycamore Companions, with the deal anticipated to shut within the fourth quarter of the yr.
How does a micro-fulfillment middle work?
When a Walgreens pharmacy supported by a middle receives a prescription order, the system decides if it ought to be stuffed by pharmacists at that location or despatched to the middle. The choice usually comes all the way down to timeliness: Facilities normally deal with refills that do not require speedy pickup.
The amenities then use robots, conveyor belts, and scanners to fill prescriptions precisely. Whereas pharmacists fill prescriptions by hand at shops, robots dispense prescriptions down a rigorously managed meeting line at facilities.
There may be nonetheless some human involvement on the amenities, although. A staff of pharmacists and pharmacy technicians works behind the scenes on the facilities to make sure that the suitable tablets attain the proper bottles.
Robotic facilities drive price financial savings for Walgreens
The micro-fulfillment amenities have had a noticeable affect on Walgreens because the first one opened in early 2021. Kayla Heffington, Walgreens’ pharmacy vice chairman, instructed CNBC that the facilities have helped Walgreens save $500 million so far and allowed its pharmacists to spend extra time with sufferers. She mentioned that the facilities allowed Walgreens to enhance prescription quantity by 126% year-over-year, whereas concurrently bringing down prices by near 13%.
Walgreens is now filling greater than 170 million prescriptions per yr, with the purpose of elevating that complete to 180 million or increased with the assistance of the facilities, she acknowledged.
Rick Gates, Walgreens’ chief pharmacy officer, added that the facilities give Walgreens “much more flexibility to carry down prices.”
“Proper now, they’re the spine to essentially assist us offset a few of the workload in our shops,” Gates instructed CNBC.
He famous that the amenities give Walgreens a bonus over impartial pharmacies and different rivals that lack robotic prescription achievement.
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Amazon Pharmacy has its personal automated pharmacy achievement facilities that intention to carry drugs to clients in two days or much less on common.
Corporations like Walmart, Kroger, and Albertsons every have micro-fulfillment facilities that course of objects like groceries, however none have publicly disclosed prescription achievement facilities.
CVS has additionally carried out automation in its provide chain, although not publicly for its pharmacies. At CVS’s Lumberton, New Jersey, distribution middle, 152 robots work collectively to course of 1.9 million merchandise per week.
Walgreens was the second largest pharmacy within the U.S. by pharmaceuticals market share in 2024, proper after CVS.
A robotic, not a human pharmacist, could also be filling your prescription at Walgreens. And there is about to be much more of them.
Walgreens instructed CNBC on Sunday that it desires to have extra of its pharmacies ship prescriptions to certainly one of its 11 micro-fulfillment facilities, or hubs that use robotic expertise to fill affected person prescriptions.
The purpose is to have the amenities deal with prescriptions for five,000 pharmacies earlier than the yr ends, up from 4,800 shops in February and 4,300 shops in October 2023.
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