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Walgreens is sneaking in one more big headline before the year ends.
According to reporting from the Wall Street Journal, the pharmacy chain is discussing selling to private equity (PE) firm Sycamore Partners, a deal that could close early next year. This comes following a tumultuous year for the company, which announced it would close 1,200 stores in October and laid off more than 250 employees in November.
The PE firm is allegedly considering selling off pieces of the business or working with partners, sources told the Journal.
Following the news, Walgreens’s stock jumped 28%, its biggest single-day increase since 1980, according to Yahoo Finance.
Back up a bit. Retail pharmacies have been going through it over the last year as vaccine fervor and foot traffic fell off after record gains during the Covid-19 pandemic.
In the last year, these retailers have seen dramatic losses in revenue, with Walgreens reporting a $3 billion net loss in its Q4 earnings—a total of $8.6 billion for 2024. The company also said in August that it might sell off its VillageMD primary care subsidiary after closing 160 clinics earlier in the year. Walgreens reported a $6 billion net loss in its Q2 earnings.