Cigna's Evernorth unit is making a hefty investment in specialty pharmacy company Shields Health Solutions.
Evernorth will drop $3.5 billion into Shields, the company announced on Tuesday morning. The backing aligns with Shields' establishment as a standalone company, as it was spun off from the broader Walgreens enterprise by Sycamore Partners last week.
The investment comes as preferred stock, and Cigna does not expect that the deal will have a material impact on its 2025 earnings guidance, which is at least $29.60 per share.
Shields partners with hospitals and health systems to assist them in setting up their own specialty pharmacies. The company works with more than 80 health systems across all 50 states, representing more than 1,000 hospitals and other facilities.
"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," David Cordani, CEO of the Cigna Group, said in the announcement.
"Investing in Shields aligns with our commitment to delivering exceptional care across health care settings—from home to physician's office or clinic to hospital," Cordani added.
Cigna's Evernorth division includes one of the country's three largest pharmacy benefit managers, Express Scripts, as well as the Accredo specialty pharmacy arm, making it a logical partner for Shields Health Solutions, executives said.
Working with Shields allows the company to reach additional providers and patients across specialty healthcare settings, according to the announcement. And it leaves the door open for future investment down the line, the company 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 Michael Ham, CEO of Shields, in the announcement. "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."
Walgreens acquired Shields in late 2022 but shortly thereafter faced a series of financial challenges that led to it being sold to Sycamore. That deal took the pharmacy giant private, and Sycamore also broke Walgreens up into five individual organizations.
Cigna previously invested in another subsidiary of Walgreens, VillageMD, but losses led the company to write down $1.8 billion of that tally in 2024.