Walgreens is facing significant challenges in its primary care strategy. In 2021, the company acquired a majority stake in VillageMD through a $5.2 billion deal, but it is now reconsidering that strategy — mirroring other large chains’ struggle to break into primary care. According to an Aug. 7 Securities and Exchange Commission filing, Walgreens is evaluating options for VillageMD, including a potential sale of all or part of its stake, as well as restructuring alternatives. The Walgreens filing highlighted ongoing cash demands from VillageMD as a key issue. Walgreens has already begun reducing its involvement, announcing in June that it plans to cut back its stake in VillageMD.
Read the full article: Is Walgreen’s Primary Care Gamble Backfiring? //
Source: https://www.beckersasc.com/asc-transactions-and-valuation-issues/is-walgreens-primary-care-gamble-backfiring.html