Walgreens-backed VillageMD is reportedly planning an IPO. Photo credit: Walgreens

A primary care startup that has Walgreens as a big backer is looking to go public later this year. According to anonymous sources cited by Bloomberg, VillageMD is planning an IPO that could take place in the third quarter and would raise between $500 million and $1 billion. It could value the startup at up to $10 billion, according to the report.

Chicago-based VillageMD was founded in 2013. The company operates free-standing primary care clinics, as well as several clinics that are co-located with Walgreens. It also offers virtual and in-home visits. The company did not respond to requests for comment at the time of publication.

Walgreens and VillageMD announced their  partnership last summer, with plans to open more than 500 primary care clinics attached to Walgreens’ stores over the next five years. The idea was to offer something beyond the usual low acuity visits seen at retail clinics — colds, strep and ear infections. Instead, doctors and pharmacists could work together to manage a patient’s care, including helping manage chronic conditions.

By this summer, the companies expect to have 40 clinics, starting in Florida, Arizona and Texas, where Walgreens piloted the concept. In a March 31 earnings call, Walgreens co-COO Alex Gourlay confirmed it was on track to reach that number, with 14 locations open across Houston and Phoenix.

Walgreens launched the partnership with an initial $250 million equity investment into VillageMD, but the pharmacy giant planned to invest a total of $1 billion over the next three years — accounting for a roughly 30% stake in the company. To date, VillageMD has raised more than $590 million, according to Crunchbase.