Walgreens Boots Alliance reported a loss of $3.7 billion in the first quarter. … [+]
The Walgreens Boots Alliance reported a loss of $3.7 billion to cover part of a large global settlement in which its pharmacies contributed to the opioid epidemic.
Walgreens on Thursday disclosed a net loss of $3.7 billion, or $4.31 per share, for the first quarter of fiscal 2023, which ended November 30, 2022. share.
“Loss per share was $4.31 in the first quarter compared to earnings per share of $4.13 in the year-ago quarter. It reflects a pre-tax charge of $6.5 billion recognized related to the said in its quarterly earnings call on Wednesday.
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CVS, Walgreens, and Walmart, the three largest retail US pharmacy chains in the United States, committed massive global settlements of more than $13 billion during the fourth quarter to settle claims related to the opioid epidemic. Agreed to pay. The U.S. Centers for Disease Control and Prevention estimates that the nationwide opioid crisis has led to more than half a million of her overdose deaths over the past two decades. Walmart, CVS and Walgreens together have over 23,000 pharmacies in the United States.
Research by state and federal attorneys and private practice attorneys representing families of opioid victims has cited the role of distributors and pharmacies in the epidemic. According to a 2019 investigative report in The Washington Post, Walgreens “handled nearly one-fifth of the most addictive opioids” and acted as a “proprietary distributor” at the peak of the crisis surrounding pain relievers.
Walgreens, meanwhile, said on Thursday that sales fell 1.5% to $33.4 billion as it transitioned from a pharmacy chain to what its chief executive called a “consumer-centric healthcare company.” Reported.
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Walgreens Chief Executive Officer Rosalind Brewer said in a statement accompanying the earnings call: “Our core retail pharmacy business in both the US and UK remains resilient in a challenging operating environment. strengthened, and our strategic actions are creating long-term shareholder value.”
Walgreens raises full-year revenue guidance to $137.5 billion from $133.5 billion, reflecting “Summit Health acquisition, currency rate updates and better-than-expected first-quarter revenue” .
During the quarter, Walgreens invested $3.5 billion in debt and equity to support VillageMD’s acquisition of Summit Health, which operates physician-staffed clinics, which closed on January 3 of this year. . Walgreens-backed VillageMD will acquire Summit Health for his $8.9 billion and expand doctor-staffed clinics across the country.
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The deal includes investments from Walgreens, which already owns over 60% of VillageMD, and Cigna’s health services business, Evernorth. Primary care provider Summit Health merged with CityMD in 2019 to form a company with more than 1,400 of his providers providing primary, specialty and emergency care.
In the first quarter, Walgreens said its U.S. healthcare segment, which includes VillageMD clinics, had first-quarter sales of $989 million, an increase of $938 million compared to the same period last year. .
“On a pro-forma basis, the segment’s business grew sales by 38.4 percent in line with the fourth quarter,” said Walgreens. “VillageMD grew 48.7%, reflecting growth in existing clinics and expanding clinic footprint.”
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Meanwhile, Walgreens’ U.S. retail pharmacy division posted first-quarter sales of $27.2 billion, down 3% from the same period last year “including a significant contribution from COVID-19 vaccinations,” the company said.
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