Medly sells pharmacy assets to Walgreens for $19.35M
A U. S. Bankruptcy Court judge in Delaware on Monday gave the green light to the sale of Medly's pharmacy assets, including its patient data, pharmacy records and prescription drug inventory to Walgreens for $19.35 million.
"We are pleased to have reached agreement to acquire the pharmaceutical records and other select assets across 22 Pharmaca Integrative Pharmacies and 4 Medly Pharmacies nationally," a Walgreens rep told Drug Store News. "Additional details are contained in the Medly Bankruptcy Sale Order approved earlier this week by the U.S. Bankruptcy Court for the District of Delaware."
[Read more: Medly Pharmacy acquiring Pharmaca]
The sale did not include its retail assets, such as over-the-counter drugs sold through its app and in physical locations, according to a report posted on Digital Health Business and Technology.
Medly filed for Chapter 11 bankruptcy protection in December 2022, listing $11.4 million in assets and $105.6 million in liabilities.
On Tuesday, Business Insider reported that Medly sent an email to employees saying it's shutting down operations and closing its remaining 22 stores by the end of the month.
In June 2021, Drug Store News reported that Medly Pharmacy, which launched in 2017, was expanding its footprint and scope of offerings with an acquisition. The Brooklyn-based company acquired Pharmaca, which operates 28 brick-and-mortar stores, as well as an e-commerce site with an online educational presence. The acquisition of Pharmaca brought Medly into 30 new markets and expanded the scope of products it was able to offer for same-day delivery.
[Read more: Walgreens eliminates task-based metrics for pharmacy staff]
Medly laid off 1,110 workers, more than half of its workforce, in August, and cut another 173 jobs in December. In September, former employees filed a lawsuit seeking class-action status that alleges Medly did not give proper written notice of the layoffs, in violation of the Worker Adjustment and Retraining Act. The suit was stayed due to Medly’s bankruptcy proceedings, the report said.