Health care is essential, yet it can feel like a luxury for many Americans, especially when accessibility is limited or costs are high.
However, Walmart may have found a solution to one of health care’s biggest problems.
Walmart has partnered with USAntibiotics, the only manufacturer of amoxicillin and amoxicillin clavulanate in the U.S., and ClarusOne Sourcing Services to expand its availability to domestically produce antibiotics.
Through this collaboration, amoxicillin will be supplied directly to Walmart pharmacies and McKesson for distribution to health care providers, hospitals, and pharmacies nationwide, leveraging Walmart’s goal to make essential medication more accessible across the U.S.
USAntibiotics operates a 394,000-square-foot production facility in Bristol, Tennessee, with the capacity to meet the nation’s full demand for amoxicillin.
“Together ClarusONE and USAntibiotics are building a resilient supply chain while also ensuring we’re meeting the needs of the communities we serve,” said ClarusONE President Hanna Watson in a press release.
“This collaboration exemplifies the power of American businesses working together to strengthen our supply chains and serve our communities. Our work continues to improve access to care and create better health outcomes for all,” added Watson.
Image source: Chris Day/The Commercial Appeal/USA TODAY Network
Walmart invests in American manufacturing
The partnership comes at a timely moment. Global tariffs, which officially took effect on August 7 after multiple delays, now range from 10% to 50% depending on the country of origin.
These tariffs threaten to disrupt the supply chain, increase manufacturing costs, and raise prices across multiple industries.
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By sourcing antibiotics domestically, Walmart (WMT) aims to shield customers from potential price hikes while ensuring a reliable supply of essential medication.
This announcement aligns with Walmart’s commitment to support American manufacturing. In 2021, the company pledged to invest an additional $350 billion in products made, grown, or assembled in the United States by 2030, supporting American jobs while reducing reliance on foreign supply chains.
Walmart expands its pharmacy business
The pharmacy business is already one of Walmart’s most lucrative sectors. The company has nearly 5,000 pharmacies nationwide, including Sam’s Club locations.
Earlier this year, Walmart became the first retailer in the U.S. to offer same-day pharmacy delivery across 49 states, allowing customers to order prescriptions alongside groceries and general merchandise in a single online purchase.
According to Becker’s Hospital Review, Walmart ranked among the top five companies operating pharmacies in the U.S. in 2024, generating around $32.7 billion in total prescription revenues and capturing 4.8% of the market share.
The reliance on these medications is evident, and there’s plenty of room for growth. The CDC reported that the total antibiotic use rate in 2023 was 756 prescriptions per 1,000 Americans.
By strengthening its domestic supply chain and offering affordable medication, Walmart is not only providing access to necessary medication but also expanding its market share and potentially increasing profits.
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