Shares of Walgreens Boots Alliance Inc. (WBA) were up 2.4% in premarket trading on Wednesday after the pharmacy chain said it will take a 30% stake in VillageMD as part of its plans to open up to 700 VillageMD primary care practices at Walgreens locations. Walgreens, which is expected to report earnings on Thursday, said it will invest $1 billion in equity and convertible debt in the privately held VillageMD over three years, including a $250 million equity investment. Several pharmacy chains including CVS Health Corp. (CVS) and Walgreens have invested in primary care services in recent years ( ). Walmart Inc. (WMT) is another example; the retail giant opened some health centers at its stores, starting in 2019. Walgreens' stock is down 28.4% year-to-date. The S&P 500 , in comparison, has declined 2.6%.
-Jaimy Lee; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 08, 2020 08:21 ET (12:21 GMT)
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