US pharmacy chain Walgreens Boots Alliance has today reported a net quarterly loss as it took a $6.5 billion opioid litigation charge.
Walgreens and rivals CVS Health and Walmart in November last year agreed to pay about $13.8 billion to resolve thousands of US state and local lawsuits accusing the pharmacy chains of mishandling opioid pain drugs.
CVS took a pre-tax charge of $5.2 billion in its third quarter related to the settlement.
Walgreens, one of the largest US pharmacies, had been relying on gains from administering Covid-19 vaccines to tide over losses from low prescription volumes due to the pandemic, but has seen demand for the shots fall from the peak last year.
It administered about 8 million vaccines in the first quarter down from 15.6 million in the same time a year earlier.
Pharmacy sales during the quarter dropped about 4% even as demand for cough and cold drugs has been high amid one of the worst US flu seasons in a decade.
The drugstore chain has been looking to expand beyond its core business and spent $5.5 billion in 2021 to take majority stakes in health care providers VillageMD and CareCentrix.
In November, Walgreens said it was acquiring urgent care provider Summit Health through its VillageMD unit in a deal valued at $9 billion to expand its healthcare footprint.
Net loss attributable to Walgreens was $3.72 billion, or $4.31 per share, for the quarter ended November 30, compared with a profit of $3.58 billion, or $4.13 per share, a year earlier including a one-time gain of $2.5 billion.
Excluding items, the company earned $1.16 per share in the first quarter, above Refinitiv IBES estimates of $1.14 a share.
