At Alchemy, our mission has always been clear: Strengthen safety-net clinics with transparent, sustainable, and high-performing in-house pharmacies.
Today, we’re excited to share a major development that advances that mission even further. Alchemy, in partnership with McKesson, has negotiated new discounted 340B drug pricing for all Alchemy in-house pharmacies, a meaningfully deeper discounts than the 340B Prime Vendor Program.
While we cannot publicly share the contract terms, the impact for our clinic partners is meaningful and structural. And importantly, this level of pricing was made possible only because of the scale, transparency, and alignment of the Alchemy model with our Clinic partners.
Why This Is a Big Deal
For most Covered Entities, drug pricing is one of the hardest operational barriers to improve:
- PVP discounts are limited
- Standard 340B pricing varies from drug to drug
- Many partners do not share true COGS
- Clinics often have no visibility into what pricing should be
The reality is this: individual clinics rarely have the negotiating leverage to materially improve drug pricing on their own. But collectively, through Alchemy, they do. Our partnership model with McKesson allows us to consolidate purchasing volume and negotiate on behalf of our network of safety-net clinics. The result is improved value for the organizations doing the hardest work in healthcare.
Yes, We’re Showing Our Work (Redacted, of Course)
Anyone can claim they negotiated “better pricing.” But showing, even in redacted form that the terms are real builds trust and confidence. It signals to our current and future clinic partners:
“Oh, this wasn’t just marketing language. They actually secured something substantial.”
That’s why we are taking the unusual step of sharing a PDF version of the internal memo sent to our customers (certain details redacted for confidentiality), but included here to underline the transparency and credibility behind this announcement.
Why This Matters for Safety-Net Clinics
This new agreement with McKesson strengthens the very heart of the in-house pharmacy model:
- More sustainable pharmacy economics
- More resources to invest back into patient care
- More resilience against market pressures
- More control and less dependence on middlemen
- More transparency than many clinics have ever experienced
Most importantly, every dollar saved flows directly to the clinic, not to intermediaries.
Transparency Is Not a Tagline. It’s Our Operating System.
A surprising number of partners in the pharmacy ecosystem obscure drug costs, hide spread, or bury margins in places clinics can’t see. Alchemy was built as the alternative to all of that. We disclose COGS. We pass through every dollar we save. We negotiate on behalf of clinics, not against them. And we design our model so clinics share in the advantages of collective scale, not the disadvantages of negotiating alone. This new pricing structure is one more proof point of that philosophy in action.
The Advantage of the Alchemy Network
This announcement reinforces a fundamental truth: Individually, safety-net clinics struggle to secure pricing improvements. Collectively, through the Alchemy network, they gain leverage, transparency, and power. This is what happens when safety-net organizations align under a model built for them and not around them.
The Alchemy model continues to evolve with more sophisticated inventory analytics, home delivery, batching efficiencies, real-time metrics, and financial dashboards designed specifically for safety-net operations. This pricing improvement with McKesson is not the finish line. It’s the start of a new phase of value creation for our partners.
As always, our promise remains unchanged: Your mission is our mission. Your patients are our patients. And your financial sustainability is the north star of every negotiation we pursue.
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