Investing.com – Walgreens stock (NASDAQ:) fell 3.5% Thursday on concerns it’s paying too much for an additional stake in primary-care provider VillageMD.
Walgreens will spend $5.2 Billion in VillageMD, to boost its shareholding from 30% down to 63%. Its stake is not less than 1 billion more than it was a year ago.
VillageMD anticipates a $1.3 Billion in revenues in 2021.
This acquisition allows the pharmacy chain to become a full-service provider of primary care with both pharmacists and physicians under one roof. VillageMD plans to open clinics in Walgreens.
Walgreens explained in a statement that they plan to open 600 Village Medical at Walgreens primary health care offices in the U.S. by 2025 and 1,000 in 2027.
VillageMD currently has more than 230 offices in 15 cities. VillageMD and Walgreens have 52 primary care practices that are co-located, with more than 80 opening by the end, according to the note.
The acquisition overshadowed the company’s fourth-quarter results beating estimates.
The fourth quarter sales rose by about 13% to $34.3 billion from the previous year. This was due in large part to 13.5 million Covid vaccines that it gave, nearly twice the 7 million it estimated for August quarter.
This quarter’s focus will be on booster doses that adults have approved for strength and the possibility of a nod to vaccination for younger children.
The adjusted earnings per share were $1.17
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