Walgreens Boots Alliance’s (NASDAQ:WBA) CEO, Timothy Wentworth, refuted recent media reports suggesting the potential sale of its specialty pharmacy unit, Shields Health Solutions, at least for the time being. Instead, the pharmacy chain aims to explore avenues to maximize the value of the business, Wentworth clarified during a conference on Monday.
In response to Bloomberg News’ January report regarding Walgreens’ alleged consideration of selling, Wentworth underscored the importance of Shields Health Solutions as a substantial asset for the company. He expressed his admiration for Shields, stating that it is a valuable asset that Walgreens possesses. Wentworth clarified that despite speculations, the company has no plans to announce the sale of Shields.
Despite this affirmation, Walgreens’ shares experienced a 2% decline in early trading. The stock has declined by 11.4% since January when Walgreens halved its dividend payout in a bid to conserve cash. The move was part of the company’s strategy to regain market share from competitors and diversify beyond traditional pharmacy operations.
In 2022, Walgreens acquired the remaining stake in Shields for $1.37 billion after initially investing $970 million to increase its ownership to 71% the previous year. Specialty pharmacies like Shields cater to patients requiring specialized medications that demand meticulous handling, storage, and distribution, often serving those with complex medical conditions such as cancer, multiple sclerosis, and rheumatoid arthritis.
Featured Image: Unsplash
