HQ Team
August 20, 2024: Walgreens Boots Alliance Inc., the second-largest pharmacy store chain in the US has bagged a $100 million government funding to expand its clinical trial capabilities, according to the company.
The Deerfield, Illinois-based company, is ranked behind CVS Health and specializes in filling prescriptions, health and wellness products, health information, and photo services.
The funding comes at a time when retail pharmacy companies such as Walgreens and CVS are facing a tough time due to increasing competition and inflation, forcing them to shutter stores.
A falling reimbursement rate for prescription drugs is a major hindrance to their expansion.
Support FDA-regulated products
The collaboration between Walgreens and the US government aims to address barriers to decentralized clinical trial access and conduct trials over five years, according to a company statement. The company signed the partnership with the Biomedical Advanced Research and Development Authority, part of the Administration for Strategic Preparedness and Response in the U.S. Department of Health and Human Services.
The pact will strengthen the US decentralized clinical research capabilities to support the development of US Food and Drug Administration-regulated products.
It will “enhance clinical innovation to execute more efficient and relevant clinical research and evaluate other medical countermeasures in real-world environments that may be used in a public health emergency.”
Walgreens has reached more than five million patients to potentially recruit into clinical trials since its start in 2022.
Ramita Tandon, chief clinical trials officer at Walgreens said the company’s network of community pharmacies and “our compliant and secure clinical trial platform enables us to pioneer a comprehensive solution to make clinical research an integral part of a patient’s healthcare journey.”
‘Public health emergency’
This assumes importance “especially when it is most critical for the well-being of our country, during a public health emergency,” she said.
About 80% of trials fail to meet their enrollment goals in the stated timeframes, often contributing to billions of dollars in delays annually.
With only 5% of the US population participating in clinical trials, there is a clear need to increase access and representation in clinical research, according to the company statement.
Walgreens operates about 9,000 retail locations across the US and Puerto Rico, serving nearly nine million customers and patients daily.
Within the US healthcare segment, Walgreens also provides businesses in primary care, multi-speciality, post-acute care, urgent care, speciality pharmacy services, population health and provider enablement.
The US clinical trials market was valued at $24.61 billion in 2022 and is projected to reach $39.62 billion by 2032, growing at a CAGR of 4.88%, according to Cliniminds, a healthcare training institute.
Personalized medicines
The growth is mainly driven by the increasing prevalence of chronic diseases, rising R&D expenditure in pharmaceuticals and biotechnology, and growing demand for personalized medicines and advanced treatments.
The US holds a significant share of the global clinical trials market, accounting for around 51.7% in 2022. Oncology is the largest indication segment, capturing around 26% of the market in 2021.
End-stage or phase III trials, involving larger patient populations and longer treatment periods, are the most expensive and generate the highest revenue share.
