Dive Brief:
- Walgreens Boots Alliance announced last week it has sold its remaining stake in home infusion provider Option Care Health for about $330 million.
- The pharmacy chain said it divested 10.8 million shares to pay down its debt and support its strategic goals as it works to become a “consumer-centric healthcare company.”
- Walgreens has already reduced its stake in other companies this year. It previously sold 15.5 million shares of Option Care in March and cut its stake in AmerisourceBergen in May.
Dive Insight:
Walgreens reported a $3 billion net loss in the first six months of the year, largely driven by opioid-related claims and litigation. In March, the company reached a settlement with New Mexico for $500 million in an opioid case, though a confidentiality provision on the agreement was lifted on Friday.
Last month, Walgreens said it would cut its corporate workforce by 10% as the pharmacy chain homes in on its healthcare business. Its moves to expand beyond its pharmacies have boosted its financials, but Walgreens faces competition from other retailers like CVS and Walmart that are also moving into healthcare delivery.
Option Care, formerly known as Walgreens Infusion Services, was acquired by the pharmacy chain in 2007. The infusion provider is currently under an agreement to purchase home care company Amedisys, but those plans may be stymied by a competing bid from UnitedHealth Group’s Optum.
Amedisys’ board determined that Optum’s bid could reasonably be expected to be “superior,” and the company is in exploratory talks.
At Jefferies Healthcare Conference, Option Care CEO John Rademacher and CFO Mike Shapiro said the company is operating under the assumption it will finish the Amedisys deal, which was set to close in the second half of the year. After Optum announced its bid, the home care company argued its deal still “delivers significant value.”
Jefferies analysts said the company’s outlook was “strong and compelling, even without AMED.”
Option Care did not respond to a request for comment by publication time.
