Walgreens Specialty Pharmacy Expands Limited Distribution Network, Strengthening Its Role in Specialty Care
Walgreens Specialty Pharmacy is solidifying its position as a leading player in the fast-growing specialty pharmacy sector by expanding its limited distribution drug (LDD) network. The company now has access to 265 products through its LDD portfolio, placing it among the most extensive networks in the industry. This expansion underscores Walgreens’ strategy of leveraging its independence from pharmacy benefit managers (PBMs) to collaborate broadly with manufacturers, providers, and payers, while continuing to support patients with complex treatment needs.
What Limited Distribution Drugs Mean for Patients and Providers
Limited distribution drugs (LDDs) are high-value specialty medications that manufacturers make available only through select pharmacies, often due to their complexity, cost, or the need for careful handling. These therapies frequently involve unique storage and administration requirements, close patient monitoring, and tailored support programs to ensure safety and adherence.
Manufacturers choose to limit distribution to a smaller network of trusted specialty pharmacies to maintain consistent quality of care, ensure compliance with handling protocols, and safeguard patient outcomes. By gaining access to a larger set of LDDs, Walgreens Specialty Pharmacy expands its ability to serve patients with conditions ranging from HIV to cancer to dermatological disorders, while also strengthening its partnerships across the healthcare system.
A Strong Position as an Independent Specialty Pharmacy
Walgreens Specialty Pharmacy’s independence is a key differentiator. Unlike many specialty pharmacies that are directly tied to PBMs, Walgreens is not restricted by ownership conflicts. This independence allows it to work flexibly with any payer, manufacturer, or healthcare provider.
“Our independence allows us to work with any payers, pharmaceutical companies, providers and other care partners,” said Tracey James, RPh, chief operating officer of Walgreens Specialty Pharmacy. “As the limited distribution drug network continues to grow, our specialty pharmacy teams across the country are equipped to support manufacturers in getting their medications to patients who need it most.”
This positioning has become increasingly important as the U.S. healthcare market continues to debate the role of PBMs, particularly around drug pricing transparency and patient access. By maintaining independence, Walgreens can position itself as a neutral partner, focused first on delivering medications and care rather than navigating PBM-driven restrictions.
Specialty Pharmacy: A Fast-Growing Healthcare Segment
The specialty pharmacy market has become one of the most dynamic areas in healthcare. Specialty medications—those used to treat chronic, rare, or complex diseases—already account for more than half of total U.S. drug spending, despite being prescribed to a relatively small proportion of patients. According to industry data, nearly 75% of new drugs in the development pipeline are classified as specialty therapies.
These medicines often include biologics, gene therapies, oncology drugs, and advanced treatments for immune and infectious diseases. Their rise reflects a broader shift in medicine toward precision therapies and personalized care. However, their complexity also means patients require significant clinical and logistical support.
Walgreens Specialty Pharmacy has invested in building multidisciplinary teams that include specialty-trained pharmacists, nurses, insurance specialists, patient advocates, and care coordinators. These professionals help patients navigate every step of their treatment journey—from prior authorizations and insurance approvals to medication counseling, adherence support, and side effect management.
This infrastructure ensures that as Walgreens’ LDD network expands, patients who rely on these medications are supported with both clinical expertise and compassionate care.
Newly Added Limited Distribution Drugs in 2025
The 2025 expansion of Walgreens Specialty Pharmacy’s LDD portfolio includes several recently approved, high-profile medications across therapeutic categories. These additions highlight the growing diversity of specialty drugs and Walgreens’ readiness to deliver them to patients:
- Yeztugo (lenacapavir) – Developed by Gilead, Yeztugo became the first and only FDA-approved twice-yearly injectable for HIV prevention as of August 2025. Its approval marked a significant advance in HIV prevention strategies, offering patients a less burdensome option compared to daily oral regimens. With Walgreens’ inclusion in its LDD network, the company will play a critical role in improving patient access to this breakthrough therapy.
- Nemluvio (nemolizumab) – Manufactured by Galderma, Nemluvio received FDA approval for patients aged 12 and older with moderate-to-severe atopic dermatitis not adequately controlled by topical therapies. It is also approved for adults with prurigo nodularis, a chronic and intensely itchy skin condition. The inclusion of Nemluvio expands Walgreens’ ability to serve patients with dermatological conditions that significantly affect quality of life.
- Imkeldi (imatinib) – From Shorla Oncology, Imkeldi represents an important treatment option for patients with certain leukemias and cancers. By making Imkeldi available through its specialty network, Walgreens reinforces its commitment to oncology care, a therapeutic area that continues to drive much of the growth in specialty pharmacy.
Each of these medications comes with its own handling requirements, patient education needs, and insurance navigation complexities—areas where Walgreens’ specialty teams are trained to provide support.
Industry Implications: Expanding Access and Partnerships
The expansion of Walgreens’ LDD network has broad implications for the specialty pharmacy market. For manufacturers, having Walgreens as a distribution partner ensures that therapies can reach more patients while maintaining strict quality and service standards. For providers, it means an expanded list of therapies they can prescribe with confidence that their patients will have the right support systems in place.
For patients, the expansion represents enhanced access and improved care continuity. Specialty patients often face barriers such as high out-of-pocket costs, limited availability of certain medications, and logistical challenges in obtaining their prescriptions. By being part of a wider LDD network, Walgreens can streamline access and provide more consistent care pathways.
Walgreens’ Broader Strategy in Specialty Care
Walgreens’ investment in specialty pharmacy is part of its larger strategy to evolve from a traditional retail pharmacy chain into a healthcare-focused company. Over the past several years, Walgreens has expanded into primary care, home health, and other healthcare delivery models through partnerships and acquisitions. Specialty pharmacy fits neatly within this strategy, given its high growth potential and its alignment with Walgreens’ existing infrastructure.
By expanding its LDD network, Walgreens strengthens its competitive position against other major specialty pharmacies owned by PBMs and insurers. The move also aligns with broader industry trends of integrating specialty pharmacy more closely with clinical care, ensuring that patients receive not only medications but also comprehensive support.
