(ABC 6 News) — In Austin, two local pharmacies announced on Thursday the would be merging after both faced financial difficulties in recent years.

Sterling Drug and Medicap Pharmacy said business became unsustainable after the decline of prescription reimbursements from insurance companies.

“We’re far better off if we come together than if we continue separately,” Sam Ewing, President if Astrup Drug, said.

It’s a battle everyone in the pharmaceutical industry has been facing, including big-box stores like Walgreen’s , which recently announced the closure of 1,200 stores nationwide.

“This year especially has been rough, the insurance companies are really being hard on pharmacies,” Jon Englehardt, owner at pharmacist at Medicap Pharmacy, said.

So in order to stay afloat, Sterling and Medicap are joining forces to keep the presence of local pharmacy in Austin.

Once the merger happens, Sterling pharmacy employees will work alongside the pharmacy employees at Medicap.

Sterling purchased Medicap and will be moving into the Medicap building, which will be renamed to Sterling Drug on Nov. 1.

Sterling also announced they would be closing the toy and gift section of their Austin store. Representatives for Sterling said it was not an easy decision, but they had to do it in order to focus on keeping local pharmacy in Austin.

The merger is scheduled to happen in Spring of 2025.