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☆ Walgreens' biggest healthcare bet is floundering as it shutters 160 primary-care clinics
▼ + stars: | 2024-03-28 | by ( ) www.businessinsider.com time to read: +4 min

It's exiting 160 VillageMD primary-care clinics, up from the previously planned 60. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Walgreens' healthcare business reported an operating loss of $1.7 billion in 2023, and VillageMD makes up the bulk of that business. The move to close so many clinics has some analysts questioning whether Walgreens plans to ditch its healthcare bets altogether. A Walgreens spokesperson said VillageMD has exited or plans to exit Florida, Indiana, Chicago, Massachusetts, Rhode Island, and Nevada.

Persons: VillageMD, —, Tim Wentworth, Roz Brewer, Mary Langowski, John Driscoll, they've, Jack Slevin, Jefferies, Allen Lutz, Slevin, Cigna Organizations: Walgreens, Service, Express, Health, Summit Health, WBA, BofA Securities, Shields Health Solutions, Healthcare Locations: VillageMD, Chicago, Florida , Indiana, Chicago , Massachusetts, Rhode Island, Nevada

☆ Amazon, CVS, and Walgreens went all in on primary care. Their bets are bleeding money.
▼ + stars: | 2024-03-06 | by ( ) www.businessinsider.com time to read: +8 min

In the past several years, Amazon, CVS Health, and Walgreens each spent billions to own primary-care companies. CVS bought Oak Street Health. Here's how the bets that Amazon, CVS, and Walgreens made are playing out. CVS is building more Oak Street clinics despite lossesAn Oak Street Health location in Elgin, Illinois during its grand opening. CVS is hoping to help Oak Street clinics get profitable quicker by driving more patients their way.

Persons: Andy Jassy, Thos Robinson, It's, JP Morgan, Berkshire Hathaway, Business Insider's Eugene Kim, Kim, they've, it's, VillageMD hasn't, Jefferies, Brian Tanquilut, Tanquilut, Lydia Ramsey, Mike Pykosz, Pykosz, Aetna, Michael Cherny Organizations: CVS Health, Walgreens, Amazon, CVS, Oak Street Health, Business, Aetna, Medical, Washington Post, Summit Health, Oak, Health Locations: Oak, VillageMD, Haven, Florida, Elgin , Illinois

☆ Walgreens is closing all VillageMD primary-care clinics in Florida as the pharmacy giant slashes costs
▼ + stars: | 2024-02-21 | by ( Rebecca Torrence | Blake Dodge | ) www.businessinsider.com time to read: +5 min

Read previewWalgreens-backed primary care company VillageMD is closing all its medical clinics in Florida, one of its largest markets. VillageMD confirmed the closures in an email to Business Insider on Wednesday. The closures are part of Walgreens' strategy to slash spending by $1 billion or more as the pharmacy giant's healthcare business struggles with losses. All of the VillageMD clinics in Florida are attached to Walgreens stores, according to Jefferies' January report. At the time of the acquisition, Walgreens had planned to open 1,000 VillageMD clinics located adjacent to its pharmacies by 2027.

Persons: —, VillageMD, Jefferies, Tim Wentworth, Brian Tanquilut, Jack Slevin, Tanquilut, Wentworth, Roz Brewer, John Driscoll, Mary Langowski, Driscoll Organizations: Service, Business, Walgreens, Jefferies, CVS Health, Summit, Solera, Shields Health Solutions, Pearl Health Locations: Florida, Texas, Arizona, VillageMD, Houston, Atlanta, Phoenix, Shields

☆ US pharmacy chain Walgreens names Tim Wentworth as CEO
▼ + stars: | 2023-10-11 | by ( ) www.reuters.com time to read: +2 min

Pigeons are seen resting on signage for Walgreens, owned by the Walgreens Boots Alliance, Inc., in Manhattan, New York City, U.S., November 26, 2021. REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsOct 10 (Reuters) - U.S. pharmacy chain operator Walgreens Boots Alliance (WBA.O) on Tuesday said it has appointed Tim Wentworth as its new chief executive and he will assume the role on Oct. 23. Last month, Rosalind Brewer had abruptly stepped down as CEO of the company after less than three years at the top job. Wentworth, who was CEO of Cigna's (CI.N) Evernorth unit till he retired in 2021, will also join the WBA Board of Directors. Walgreens has been looking to expand beyond its core business, with acquisitions of healthcare services operator VillageMD and urgent-care provider Summit Health.

Persons: Andrew Kelly, Tim Wentworth, Rosalind Brewer, Wentworth, Urvi, Rashmi Organizations: Walgreens, Walgreens Boots Alliance, Inc, REUTERS, WBA, Rite Aid, CVS Health, Summit Health, Thomson Locations: Manhattan , New York City, U.S, Bengaluru

☆ Dow Industrials are now in the red for 2023, but these stocks may lead it back into the black, analysts say
▼ + stars: | 2023-05-04 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Among the index's biggest losers were Disney , American Express , Goldman Sachs and Boeing . Here are the top 10 names with the largest upside to the average price target, according to data pulled from FactSet. American Express can rally 23.5%, while Goldman Sachs has 21% upside, according to analysts' average price targets. AXP YTD mountain American Express year to date Last month, American Express reported an earnings miss for the first quarter, but its revenue beat expectations, per Refinitiv. Goldman Sachs, however, missed on revenue thanks to a $470 million loss on the partial sale of its Marcus loans portfolio.

March 28 (Reuters) - Walgreens Boots Alliance Inc (WBA.O) said on Tuesday it does not plan to increase wages further, as a shortage of pharmacists eases after the company doubled down on hiring and pay raises last year. A labor shortage during the pandemic prompted Walgreens and other U.S. drugstore operators, including CVS Health Corp (CVS.N) and Walmart Inc (WMT.N), to raise minimum wages to $15 per hour to attract pharmacists. Shares of the company rose 4.3% to $34.37 in midday trading. The health segment saw a sharp increase in revenue to $1.6 billion, driven by the deals. Reporting by Leroy Leo and Khushi Mandowara in Bengaluru; Editing by Maju Samuel and Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ Walgreens revenue rises despite sharp decline in demand for Covid tests, vaccines
▼ + stars: | 2023-03-28 | by ( Bertha Coombs | ) www.cnbc.com time to read: +2 min

Under CEO Rosalind Brewer, now in her second year, Walgreens has focused on growing the company's health unit primary care and in-home services. During the quarter, Walgreens invested $3.5 billion toward VillageMD's acquisition of primary care provider Summit Health. Health care unit revenues topped $1.6 billion in the quarter, with primary care services growing 30% at VilliageMD, including Summit Health, while home care at CareCentrix was up 25%. "With the closing of VillageMD's acquisition of Summit Health, WBA is now one of the largest players in primary care," Brewer said in the company's earnings release. Walgreens reaffirmed its full year earnings guidance of $4.45 to $4.65 per share, projecting adjusted earnings growth of mid-20% over the next two quarters.

☆ Beware these debt-heavy stocks in your portfolio as borrowing costs rise
▼ + stars: | 2023-03-27 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

That leaves companies with high debt, accustomed to low financing costs, facing refinancing risks, Evercore ISI analyst Julian Emanuel said. Here are some of the names Evercore ISI said could be hurt by a material change in borrowing and business conditions. Carvana's short-term debt is 20.4% of its total debt and its net debt to equity is 503.6%. Meanwhile, Duke Energy 's short-term debt is 10.9% of its total debt and its net debt to equity is 107.3%, according to Evercore ISI. Lastly, Walgreens Boots Alliance 's short-term debt is 17.1% of its total debt and its net debt to equity is 115.2%.

☆ Loop Capital says buy Walgreens, predicts growth in new health care platform can drive up shares more than 20%
▼ + stars: | 2023-02-23 | by ( Samantha Subin | ) www.cnbc.com time to read: +1 min

It's time for investors to snatch up shares of Walgreens Boots Alliance , according to Loop Capital. Analyst Joseph France initiated coverage of the drugstore operator with a buy rating and $45 price target, saying that Walgreens' new health care platform should improve services access for its customers. These facilities should eventually offer high margins, although a quick opening clip through 2027 could contribute to sizeable losses, he added. So far this year, shares of Walgreens have dipped 3.4%. The firm's price target implies nearly 25% upside from Wednesday's close.

☆ CVS wants to be the doctor for people on Medicare
▼ + stars: | 2023-02-09 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

New York CNN —CVS is buying a primary care doctor’s network, moving the pharmacy deeper into providing physician services for patients. Medicare Advantage, also known as Medicare Part C, is a type of Medicare health plan offered by a private company that contracts with Medicare. In 2018, CVS bought Aetna, making it one of the largest health insurers in the country. “In the last three years, health insurers have become increasingly interested in purchasing primary care practices and employing physicians,” Nicholson said. Additionally, private Medicare plans typically offer higher reimbursement rates from the federal government than traditional Medicare, and CVS wants to capitalize on this, he said.

☆ Factbox: Which CVS rivals also own primary care services
▼ + stars: | 2023-02-08 | by ( ) www.reuters.com time to read: +2 min

Here is a list of some big companies that are also providing medical services or have announced similar deals:UnitedHealth Group IncUnitedHealth's (UNH.N) Optum Health business provides services that range from primary care to specialty care such as cardiology and oncology. UnitedHealth last year also announced a deal to buy LHC Group (LHCG.O), which provides healthcare services at home, for about $5.4 billion. Walgreens Boots AlliancePharmacy chain Walgreens (WBA.O) in 2021 took a majority stake in primary care provider VillageMD, which has nearly 400 clinics in the United States including 200 co-located with Walgreens retails stores, as of the end of 2022. VillageMD completed the acquisition of urgent care provider Summit Health in a deal valued at $9 billion. Amazon.com IncAmazon.com Inc (AMZN.O) agreed to buy primary care provider One Medical for $3.49 billion in July to expand its virtual healthcare and add brick-and-mortar doctors' offices.

☆ CVS just struck a $10.6 billion deal with Oak Street Health to become a one-stop shop for healthcare
▼ + stars: | 2023-02-08 | by ( Alex Bitter | ) www.businessinsider.com time to read: +3 min

CVS Health is buying Oak Street Health for $10.6 billion, its biggest move into primary care yet. But the Oak Street deal will add full-service medical clinics to what CVS offers. Competition is heating up among major healthcare companies to be the first place you go when you need medical care. Oak Street Health CEO Mike Pykosz Oak Street HealthCVS will pay a premium for Oak Street compared to the clinic operator's IPO price. In Wednesday's all-cash deal, CVS valued Oak Street at $39 a share.

☆ Stocks making the biggest moves premarket: Silvergate Capital, Walgreens, Amazon and more
▼ + stars: | 2023-01-05 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

People walk by a Walgreens, owned by the Walgreens Boots Alliance, Inc., in New York City, November 26, 2021. Check out the companies making headlines and moves in premarket trading. Walgreens Boots Alliance — The drugstore stock fell about 2% in premarket even after the company reported fiscal first quarter earnings that beat analyst estimates. Western Digital — Shares jumped more than 5% after Western Digital and Japan's Kioxia Holdings resumed merger talks, according to a Bloomberg News report that cited sources familiar with the matter. American Express — The stock fell 1.48% in the premarket after being downgraded by Stephens on Thursday to underweight from equal weight.

☆ Walgreens Boots Alliance (WBA) Q1 earnings 2023
▼ + stars: | 2023-01-05 | by ( Gabrielle Fonrouge | ) www.cnbc.com time to read: +4 min

Walgreens Boots Alliance on Thursday reported fiscal first quarter earnings beat Wall Street's estimates Thursday after an early flu season boosted demand for cough and cold medicine. The company said it also raised its full-year revenue outlook due in part to its U.S. health care segment's just-sealed acquisition of Summit Health. The company is in the process of acquiring CareCentrix, which coordinates home care for patients after they're discharged from the hospital, and Shields Health Solutions, a specialty pharmacy company. The acquisition led Walgreens to increase its full year sales guidance to $133.5 billion to $137.5 billion. The company is also maintaining its full-year earnings per share guidance of $4.45 to $4.65, compared to estimates of $4.50.

☆ Walgreens posts loss on $6.5 bln opioid litigation charge
▼ + stars: | 2023-01-05 | by ( ) www.reuters.com time to read: +2 min

Jan 5 (Reuters) - Drugstore chain Walgreens Boots Alliance Inc (WBA.O) reported a net quarterly loss on Thursday as it took a $6.5 billion opioid litigation charge, sending its shares down nearly 2% in premarket trade. CVS took a pre-tax charge of $5.2 billion in its third quarter related to the settlement. It administered about 8 million vaccines in the first quarter down from 15.6 million in the same period a year earlier. In November, Walgreens said it was acquiring urgent care provider Summit Health through its VillageMD unit in a deal valued at $9 bln to expand its healthcare footprint. Excluding items, the company earned $1.16 per share in the first quarter, above Refinitiv IBES estimates of $1.14 a share.

Jan 5 (Reuters) - Walgreens Boots Alliance (WBA.O) said on Thursday it will not strike new deals in the short term after a spate of acquisitions in recent years, as it focuses on ramping up sales at its newer healthcare business. "We're not considering any M&A type activity in the short term. We need to focus on integration activities," Chief Financial Officer James Kehoe said in a post-earnings conference call. Walgreens said same-store pharmacy sales rose 4.8% in the reported quarter from a year earlier, but below Evercore ISI's estimates of 5% growth. Net loss attributable to Walgreens was $3.72 billion, for the quarter ended Nov. 30, compared with a profit of $3.58 billion, a year earlier.

☆ Walgreens CEO Roz Brewer wants to make getting healthcare as easy as going to your neighborhood pharmacy
▼ + stars: | 2022-12-28 | by ( Marguerite Ward | ) www.businessinsider.com time to read: +5 min

Brewer, 60, is chasing a new first of sorts in her role at Walgreens: turning the $33 billion pharmacy chain into a destination healthcare company. After stepping into power at America's second-largest pharmacy during the deadliest disease event in US history, Brewer has been pursuing a wide-ranging strategy to remake the company. The company's larger rival, CVS Health, is following a similar strategy of making healthcare a bigger part of its business. "Dispensing of pharmaceuticals is not going to be our long-term growth avenue," Brewer said at a 2022 healthcare-industry conference, according to FierceHealthcare. But healthcare is complex and even the company's long-standing pharmacy business comes with challenges.

Insider's second-annual list of the Most Transformative CEOs features three executives who are leading innovation in their industries. These CEOs are devising new ways to serve a range of interests, including clients, employees, and investors. At FanDuel, Howe has brought more women into the industry. ROSALIND BREWER, the CEO of Walgreens Boots AllianceRosalind Brewer, the CEO of Walgreens Boots Alliance. BRIAN NICCOL, the CEO of ChipotleBrian Niccol, the CEO of Chipotle.

☆ Cowen upgrades Walgreens, says stock can rally more than 30% as company grows health care business
▼ + stars: | 2022-11-22 | by ( Samantha Subin | ) www.cnbc.com time to read: +1 min

Shares of Walgreens Boots Alliance offer an attractive risk-reward to investors as the company transforms into a health care services-focused business, according to Cowen. Instead, he views massive growth opportunities for the company as it ramps up investments in health care services. "We view the risk/reward as very attractive, and believe investors should take the risk, given near-term support from 4.8% dividend yield." He expects additional upside from Walgreens' latest health care investments and offerings, including its acquisition of CareCentrix and the addition of Summit Health following its merger with VillageMD . Walgreens' current valuation also takes into account the macro risks concerning some investors and weighing on analysts' targets, he added.

☆ Goldman’s official 2023 outlook is here: Where it thinks the market is headed and what to buy
▼ + stars: | 2022-11-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Goldman Sachs is predicting zero earnings growth in 2023, with stocks ending the next year essentially flat. The firm is pegging 2023 S & P 500 earnings-per-share flat at $224 and the index ending next year at 4,000, just over 1% from Monday's close. The bank's EPS yield for the next 12 months is 14%, while its estimated EPS will decline by 12% in 2023, according to Goldman. Walgreens's EPS yield for the next 12 months is 11% and its estimated 2023 earnings growth is 2%, Goldman found. Its next-12-month EPS yield is 7% and its estimated EPS growth for 2023 is 4%, according to Goldman.

☆ 3 reasons a major health insurer just made a $2.7 billion bet on a Walgreens-backed effort to upend healthcare
▼ + stars: | 2022-11-21 | by ( ) www.businessinsider.com time to read: +3 min

The deal would give it a stake in VillageMD, an annual dividend, and a push toward value-based care. VillageMD said this week that it plans to merge with fellow primary-care provider Summit Health-CityMD in an $8.9 billion deal funded in part by the healthcare giant Cigna. VillageMD CEO Tim Barry Courtesy VillageMD3 reasons why Cigna's investing $2.7 billion in VillageMDEvanko said the investment provides financial and strategic benefits for Cigna. That stake would provide the healthcare company, which reported profits of $5.4 billion in 2021, with an annual dividend of about 5.5% on $2 billion of the $2.7 billion investment, Evanko said, according to a transcript from Sentieo. Evernorth could take what it learns from partnering with VillageMD and extend those capabilities to other healthcare providers it works with, he said.

☆ Here are Friday's biggest analyst calls: Coinbase, Apple, Amazon, GM, Conagra, Pfizer & more
▼ + stars: | 2022-11-18 | by ( Michael Bloom | ) www.cnbc.com time to read: +5 min

Credit Suisse downgrades Hewlett Packard to neutral from outperform Credit Suisse said it sees too many macro headwinds for the stock. Credit Suisse names Ross a top pick Credit Suisse says the offprice retailer has the most "torque" to accelerate market share gains. "Strong 3Q updates from ROST /TJX reinforces our bullish thesis that Offpricers are quickly repositioning for accelerating market share and powerful EPS tailwinds as margins revert to pre-COVID levels starting in '23." Credit Suisse initiates Pfizer as outperform Credit Suisse said in its initiation of Pfizer that it likes the company's pipeline advances. " Credit Suisse initiates Eli Lilly as outperform Credit Suisse said in its initiation of Eli Lilly that it sees "upward revisions" from obesity sales.

☆ Buy Walgreens as it ramps up its health care strategy, JPMorgan says in upgrade
▼ + stars: | 2022-11-18 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

It's time to buy Walgreens Boots Alliance as it makes notable progress in its health care strategy, according to JPMorgan. Analyst Lisa Gill upgraded the stock to overweight from neutral as the drugstore chain works to revamp its business and focus on health care. "The faster than expected ramp in Walgreens Healthcare, creates the potential for the segment to be a material contributor in the medium-term," she added. This month, VillageMD, a primary care company that is majority owned by Walgreens, said it's acquiring Summit Health, the parent company of urgent care clinics CityMD, for $8.9 billion. Walgreens' other acquisitions include acquiring CareCentrix , an at-home care company.

☆ EXCLUSIVE Carlyle seeks to line up bid for urgent care provider Heritage -sources
▼ + stars: | 2022-11-15 | by ( David Carnevali | ) www.reuters.com time to read: +3 min

Carlyle, a Washington, D.C.-based buyout firm, has been in discussions with other private equity firms about assembling a consortium that would make an offer to acquire HPN, the sources said. HPN generates annual cash flow of around $600 million, according to the sources. Merkin grew the Los Angeles-based company into a managed care powerhouse in the Californian market, where it serves nearly 700,000 individuals. Earlier this month, primary care provider VillageMD, which is backed by Walgreens Boots Alliance Inc (WBA.O), said it would acquire private equity-owned urgent care provider Summit Health in a deal valued at $9 billion. Amazon agreed in July to buy primary care provider One Medical for $3.49 billion, while CVS inked a deal in September to acquire Signify Health for $8 billion.

☆ A top Cigna exec shares 3 key reasons the health insurer just bet $2.7 billion on Walgreens-backed primary-care upstart VillageMD
▼ + stars: | 2022-11-11 | by ( ) www.businessinsider.com time to read: +3 min

Cigna is putting $2.7 billion behind primary-care company VillageMD's merger with Summit Health-CityMD. The deal would give it a stake in VillageMD, an annual dividend, and a push toward value-based care. VillageMD said this week that it plans to merge with fellow primary-care provider Summit Health-CityMD in an $8.9 billion deal funded in part by the healthcare giant Cigna. VillageMD CEO Tim Barry Courtesy VillageMD3 reasons why Cigna's investing $2.7 billion in VillageMDEvanko said the investment provides financial and strategic benefits for Cigna. Evernorth could take what it learns from partnering with VillageMD and extend those capabilities to other healthcare providers it works with, he said.

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