Pharmacy store chain operator Walgreens acquired bankrupt startup Medly's core business, including its intellectual property, pharmacy inventory, prescription files, trademark, and logo, for $19.35M.

 

Pharmacy store chain operator Walgreens acquired bankrupt startup Medly's core business, including its intellectual property, pharmacy inventory, prescription files, trademark, and logo, for $19.35M.  The acquisition will give Walgreens access to Medly's customer base. As of mid-2022, the firm served 32,000 customers across the U.S. A Delaware judge approved the acquisition on Tuesday.  New York-based digital pharmacy startup Medly operated specialty pharmacies and provided free delivery of medicines across the U.S.  The startup had raised $110M in venture funding.  Medly's monthly losses amounted to between $9M to $11M.  The firm laid off 1,100 of its 1,900 employees in Aug. 2022 and closed stores in a bid to curb losses.  It filed for Chapter 11 bankruptcy protection in Dec. 2022. In February, an auction was held to sell Medly's assets.  Walgreens did not bid on leases on its stores in the auction.  According to the bankruptcy filing, the company currently has 22 stores, down from 51 at its peak. Besides Walgreens, CVS Health also placed bids for Medly's core business assets.