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Walgreens Invests Another $ 5.2 Billion in Primary Care Provider Village MD

Video Source: YouTube, CNBC Televison

Walgreens Boots Alliance Inc (Nasdaq: WBA) Will invest $ 5.2 billion in primary care provider Village MD as part of a pharmacy chain’s plans to open more co-located clinics within drugstores across the United States.

investment Presentation Thursday, Deerfield, Illinois-based chain will invest in Village MD 30% acquired in July 2020..

Village MD will continue to be an independent company with its own management team and board of directors, after the transaction is expected to close by the end of this year. According to both companies, Village MD plans to go public by the end of next year.

Walgreens is part of a broader strategy to turn stores into health care destinations that not only prescribe, but also provide access to doctors for health checkups and other types of care.

After the first partnership in 2019, Walgreens and Village MD have opened 52 primary care clinic locations, plus 80 scheduled to start by the end of the calendar year..

With the latest investment, at least 600 Village MD clinics will be opened in more than 30 US markets by 2025, and 1,000 clinics will be opened by 2027.

“The Walgreens-Village MD partnership will significantly increase access to primary care in poorly serviced urban and rural communities. Over 75% of Americans live within 5 miles of Walgreens. “The two companies said.

Walgreens CEO Roz Brewer told CNBC that most clinics will be about 3,300 square feet. That’s almost a quarter of the average store size of 13,500 square feet.

The place also accepts different types Health insurance According to Brewer, it offers out-of-pocket payment options and a sliding scale for those who do not have health insurance.

Walgreens retail pharmacy rival CVS health When Walmart They are also moving into value-based primary care, one of the fastest segments in the healthcare industry, both of which have launched their own in-store clinics.

In a statement Thursday, Village MD CEO and Chairman Tim Barry said: Better patient care. “

“WBA’s investment supports our ongoing commitment to providing the highest quality care for all patients, including many who currently do not have convenient access to primary care providers,” Barry said. I am. “This expanded partnership will help accelerate our mission to provide the best medical care in the world.”

Walgreens’ announcement on Thursday Fourth quarter financial results, Revenue and exceeded earnings expectations. Pharmacies saw a boost from COVID-19 vaccine and testing, and a recovery in demand for over-the-counter drugs.

Revenue: JP Morgan missed third-quarter revenue, surpassing revenue estimates for one-off items

Walgreens reported adjusted earnings per share of $ 1.17 for the quarter ending August 31, exceeding analysts’ expectations of $ 1.02. The company generated $ 34.26 billion in revenue, exceeding the $ 33.30 billion consensus forecast.

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sauce: Equity news



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