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 informed CNBC on Sunday that it desires to have extra of its pharmacies ship prescriptions to one among its 11 micro-fulfillment facilities, or hubs that use robotic know-how to fill affected person prescriptions.
The aim is to have the amenities deal with prescriptions for five,000 pharmacies earlier than the 12 months 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 increase 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 12 months.
How does a micro-fulfillment middle work?
When a Walgreens pharmacy supported by a middle receives a prescription order, the system decides if it needs to be stuffed by pharmacists at that location or despatched to the middle. The choice typically comes right down to timeliness: Facilities normally deal with refills that do not require quick 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 fastidiously managed meeting line at facilities.
There’s 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 appropriate drugs attain the proper bottles.
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Robotic facilities drive value financial savings for Walgreens
The micro-fulfillment amenities have had a noticeable impression on Walgreens for the reason that first one opened in early 2021. Kayla Heffington, Walgreens’ pharmacy vp, informed CNBC that the facilities have helped Walgreens save $500 million to this point and allowed its pharmacists to spend extra time with sufferers. She stated 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 12 months, with the aim of elevating that whole 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 among the workload in our shops,” Gates informed 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 prospects 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 informed CNBC on Sunday that it desires to have extra of its pharmacies ship prescriptions to one among its 11 micro-fulfillment facilities, or hubs that use robotic know-how to fill affected person prescriptions.
The aim is to have the amenities deal with prescriptions for five,000 pharmacies earlier than the 12 months ends, up from 4,800 shops in February and 4,300 shops in October 2023.
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