Jan 5 (Reuters) – Drugstore chain Walgreens Boots Alliance Inc (WBA.O) reported a internet quarterly loss on Thursday because it took a $6.5 billion opioid litigation cost, sending its shares down practically 2% in premarket commerce.
Walgreens and rivals CVS Well being Corp (CVS.N) and Walmart Inc (WMT.N) in November final 12 months agreed to pay about $13.8 billion to resolve 1000’s of U.S. state and native lawsuits accusing the pharmacy chains of mishandling opioid ache medication.
CVS took a pre-tax cost of $5.2 billion in its third quarter associated to the settlement.
Walgreens, one of many largest U.S. pharmacies, had been counting on positive aspects from administering COVID-19 vaccines to tide over losses from low prescription volumes because of the pandemic, however has seen demand for the photographs fall from the height final 12 months.
It administered about 8 million vaccines within the first quarter down from 15.6 million in the identical interval a 12 months earlier. Pharmacy gross sales in the course of the quarter dropped about 4% whilst demand for cough and chilly medication has been excessive amid one of many worst U.S. flu seasons in a decade.
The pharmacy chain has been trying to develop past its core enterprise and spent $5.5 billion in 2021 to take majority stakes in well being care suppliers VillageMD and CareCentrix.
In November, Walgreens mentioned it was buying pressing care supplier Summit Well being by means of its VillageMD unit in a deal valued at $9 bln to develop its healthcare footprint.
Internet loss attributable to Walgreens was $3.72 billion, or $4.31 per share, for the quarter ended Nov. 30, in contrast with a revenue of $3.58 billion, or $4.13 per share, a 12 months earlier together with a one-time acquire of $2.5 billion.
Excluding objects, the corporate earned $1.16 per share within the first quarter, above Refinitiv IBES estimates of $1.14 a share.
Reporting by Raghav Mahobe and Aditya Samal in Bengaluru
Enhancing by Vinay Dwivedi
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