Evernorth putting $3.5 billion into Shields Health Solutions

Cigna subsidiary Evernorth Health Services will be investing heavily into Shields Health Solutions, pumping $3.5 billion into the standalone specialty pharmacy company.

Shields was formerly a Walgreens company, but has been operating as a private, standalone company since its acquisition by New York-based private equity firm Sycamore Partners. That followed Sycamore's acquisition of Walgreens Boots Alliance, which closed Aug. 28.

Evernorth's investment in Shields is in the form of preferred stock and is not expected to have a material impact on The Cigna Group's previously issued 2025 adjusted earnings per share guidance of at least $29.60.

WHAT'S THE IMPACT

Shields helps hospitals and health systems develop and manage their own specialty pharmacies. The company partners with more than 80 health systems made up of more than 1,000 hospitals and clinics across most states.

"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 Chairman and CEO David M. Cordani. "Investing in Shields aligns with our commitment to delivering exceptional care across healthcare settings – from home to physician's office or clinic, to hospital."

Evernorth offers direct-to-patient pharmacies, a complex medication distributor, inventory management technology, and home and ambulatory infusion services. 

Investing in Shields, the company said, will allow it more opportunities to support patients and providers, and enhance continuity of care across specialty healthcare settings. It also provides the option for additional investment in Shields over time, Evernorth said.

"Our team at Shields has been proud to deliver exceptional clinical, financial and operational outcomes for our health system partners and their patients served through our differentiated care model,” said Shields CEO Michael Ham. Both Sycamore's acquisition of Shields, and Evernorth's support for the transaction, demonstrate clear validation of our successful health system-focused specialty pharmacy strategy and patient-focused care model."

THE LARGER TREND

In July, Walgreens shareholders voted to approve the company's sale to Sycamore Partners in a merger, estimated at $23.7 billion.

When the initial merger announcement was made March 6, WBA shareholders were estimated to receive $11.45 per share in cash at closing, along with the one nontransferable divested asset proceeds right to receive up to an additional $3 in cash per share from the future monetization of WBA's debt and equity interests in VillageMD.