Walgreens Boots Alliance considering options for VillageMD business
Walgreens Boots Alliance said it was exploring options for VillageMD, doctor staffed clinics, including a sale of all or part of the VillageMD businesses, according to an SEC filing on Wednesday.
In the SEC filing, the company noted that previously, on June 27, 2024, Walgreens Boots Alliance "initiated a strategic and operational review towards simplifying and focusing its U.S. Healthcare portfolio, including the assessment of the company’s investment in its majority-owned VillageMD."
The company also said in the filing Wednesday that it is currently evaluating a variety of options with respect to VillageMD in light of ongoing investments by the company in VillageMD’s businesses and VillageMD’s substantial ongoing and expected future cash requirements. "These options could include a sale of all or part of the VillageMD businesses, possible restructuring options and other strategic opportunities," the company said.
[Read more: Industry Issues Summit: How VillageMD is transforming health care]
On Wednesday, Walgreens said it entered into a forbearance agreement with VillageMD after the business defaulted on a $2.25 billion secured loan facility provided by Walgreens.
A WBA spokesperson provided Drug Store News with the following statement, "We have been taking action to simplify and focus our business on our core foundation of retail pharmacy services. As we prioritize creating value and enhancing our liquidity position, WBA has entered into an agreement with VillageMD that provides additional runway to continue active engagement with VillageMD’s stakeholders and other third parties to evaluate a variety of options that will position it for sustainable growth."
The statement continued, "Grounded in our shared commitment to patient care, WBA is fully supportive of VillageMD as we work collaboratively with VillageMD leadership toward a solution with no changes to day-to-day operations for doctors or practice operations. Following recent actions to right-size VillageMD's footprint and cost structure, the business is now on a clearer path to profitability as it continues to add lives and optimize its expense profile."