Walgreens reported a steep quarterly loss, reflecting a nearly $6 billion write-down in the value of its investment in primary care clinic chain VillageMD. The drugstore chain invested $1 billion in VillageMD in 2020 and then sunk $5.2 billion into the primary care company in 2021, making it the majority owner with a 63% stake. But the company is now scaling back VillageMD’s footprint. Last fall, Walgreens announced plans to close 60 underperforming clinics and exit five markets as part of an aggressive $1 billion cost-saving strategy as it looks to boost profitability in its healthcare business. A Walgreens spokesperson told Forbes the company is shuttering 160 clinics.
Read the full article: Walgreens Takes $6B Hit in Q2 from VillageMD Investment //
Source: https://www.fiercehealthcare.com/retail/walgreens-takes-6b-hit-q2-villagemd-investment