Company has completed the $1 billion investment
and increased the number of co-located clinics
Walgreens Boots Alliance (Nasdaq: WBA) and VillageMD today
announced that WBA has accelerated its investment in VillageMD to
support the opening of 600 to 700 Village Medical at Walgreens
primary care clinics in more than 30 U.S. markets within the next
four years, with the intent to build hundreds more thereafter.
Walgreens is the first national pharmacy chain to offer
full-service primary care clinics co-located at its stores at a
large scale.
In July of 2020, Walgreens and VillageMD announced an expansion
of their partnership and the intent to open 500 to 700 clinics,
supported by WBA’s investment in VillageMD over three years of $1
billion in equity and convertible debt, which included an initial
$250 million equity investment. WBA and VillageMD have now
re-negotiated the terms of their agreements to enable WBA to
accelerate their investment to increase the pace and scale of the
rollout of the clinics and to adjust certain other terms. As of
today, WBA’s $750 million investment has been completed.
“Walgreens is focused on creating the pharmacy of the future,
providing a broad and meaningful range of high-quality, affordable
healthcare services to our patients and customers,” said Stefano
Pessina, executive vice chairman and CEO, Walgreens Boots Alliance.
“Through these conveniently located clinics at our neighborhood
stores, we will uniquely integrate the pharmacist as a critical
member of VillageMD’s multi-disciplinary care team to provide
patients with personalized and coordinated care.”
“Together with Walgreens, we remain steadfast in our commitment
to providing accessible, coordinated primary care in more
communities nationwide,” said Tim Barry, chairman and CEO at
VillageMD. “Village Medical at Walgreens offers a full continuum of
care to meet patients’ needs with a physician-led team of
experienced providers. Our high-tech, high-touch model delivers
exceptional and personal care to more patients at a time when
coordinated primary care is most critical.”
In December of 2020, the companies announced plans to open the
next 40 full-service primary care clinics in Texas, Arizona and
Florida by the end of summer 2021. With many clinics in medically
underserved areas, Village Medical at Walgreens will help meet the
needs of patients, including those who may not have access to
healthcare and are at greater risk of health disparities. The
clinics will accept a wide range of health insurance options,
offering cost-effective and comprehensive primary care to meet the
full continuum of healthcare needs. Healthcare services are offered
through a variety of ways, providing access to Village Medical care
and support through in-person, at home and Village Medical
telehealth providers on Walgreens Find Care™, which is an online
platform that connects patients with a wide range of health
services.
For more information about Village Medical at Walgreens
services, please visit VillageMedical.com. For more information as
well as multimedia assets, please visit the Walgreens Newsroom on
walgreens.com.
Notes to Editors:
About Walgreens Boots Alliance Walgreens Boots Alliance
(Nasdaq: WBA) is a global leader in retail and wholesale pharmacy,
touching millions of lives every day through dispensing and
distributing medicines, and through its convenient retail
locations, digital platforms and health and beauty products. The
company has more than 100 years of trusted healthcare heritage and
innovation in community pharmacy and pharmaceutical
wholesaling.
Including equity method investments, WBA has a presence in more
than 25 countries, employs more than 450,000 people and has more
than 21,000 stores.
WBA’s purpose is to help people across the world lead healthier
and happier lives. The company is proud of its contributions to
healthy communities, a healthy planet, an inclusive workplace and a
sustainable marketplace. WBA is a Participant of the United Nations
Global Compact and adheres to its principles-based approach to
responsible business.
WBA is included in FORTUNE’s 2020 list of the World’s Most
Admired Companies*, ranked first in the food and drugstore
category. This is the 27th consecutive year that WBA or its
predecessor company, Walgreen Co., has been named to the list.
More company information is available at www.walgreensbootsalliance.com.
*© 2020, Fortune Media IP Limited. Used under license.
(WBA-GEN)
About VillageMD
VillageMD, through its subsidiary Village Medical, is a leading,
national provider of value-based primary care services. VillageMD
partners with physicians to provide the tools, technology,
operations, staffing support and industry relationships to deliver
high-quality clinical care and better patient outcomes, while
reducing the total cost of care. The Village Medical brand provides
primary care for patients at traditional free-standing clinics,
Village Medical at Walgreens clinics, at home and via virtual
visits. VillageMD and Village Medical have grown to include more
than 2,800 physicians across nine markets, are responsible for
approximately 600,000 lives and manage $4 billion in total medical
spend in value-based contracts. To learn more, please visit
www.VillageMD.com.
Cautionary Note Regarding Forward-Looking Statements: All
statements in this release that are not historical including,
without limitation, those regarding the expected execution and
effect of our business strategies and the strategic partnership and
initiative are forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Words such as “expect,” “likely,” “outlook,” “forecast,”
“preliminary,” “pilot,” “would,” “could,” “should,” “can,” “will,”
“project,” “intend,” “plan,” “goal,” “target,” “aim,” “continue,”
“sustain,” “transform,” “accelerate,” “long-term,” “believe,”
“seek,” “estimate,” “anticipate,” “upcoming,” “to come,” “may,”
“possible,” “assume,” and variations of such words and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties and
assumptions, known or unknown, that could cause actual results to
vary materially from those indicated or anticipated, including, but
not limited to, those relating to the spread and impacts of
COVID-19, any mutations thereof or future pandemic and the
acceptance and effectiveness of any therapies or vaccines related
thereto, the impact of private and public third-party payers’
efforts to reduce prescription drug reimbursements, the risks
associated with the withdrawal of the United Kingdom from the
European Union and the agreement related thereto, fluctuations in
foreign currency exchange rates, the timing and magnitude of the
impact of branded to generic drug conversions and changes in
generic drug prices, our ability to realize synergies and achieve
financial, tax and operating results in the amounts and at the
times anticipated, the inherent risks, challenges and uncertainties
associated with forecasting financial results of large, complex
organizations in rapidly evolving industries, particularly over
longer time periods, and during periods with increased volatility
and uncertainties, our supply, commercial and framework
arrangements and transactions with AmerisourceBergen and their
possible effects, the risks associated with the company’s equity
method investment in AmerisourceBergen, circumstances that could
give rise to the termination, cross-termination or modification of
any of our contractual obligations, the amount of costs, fees,
expenses and charges incurred in connection with strategic
transactions, whether the costs and charges associated with
restructuring initiatives will exceed estimates, our ability to
realize expected savings and benefits from cost-savings
initiatives, restructuring activities and acquisitions and joint
ventures in the amounts and at the times anticipated, the timing
and amount of any impairment or other charges, the timing and
severity of cough, cold and flu season, risks relating to looting
and vandalism in regions in which we operate and the scope and
magnitude of any property damage, inventory loss or other adverse
impacts, risks related to pilot programs and new business
initiatives and ventures generally, including the risks that
anticipated benefits may not be realized, changes in management’s
plans and assumptions, the risks associated with governance and
control matters, the ability to retain key personnel, changes in
economic and business conditions generally or in particular markets
in which we participate, changes in financial markets, credit
ratings and interest rates, the risks relating to the terms,
timing, and magnitude of any share repurchase activity, the risks
associated with international business operations, including
international trade policies, tariffs (including tariff
negotiations between the United States and China) and relations,
the risks associated with cybersecurity or privacy breaches related
to customer information, changes in vendor, customer and payer
relationships and terms, including changes in network participation
and reimbursement terms and the associated impacts on volume and
operating results, risks related to competition, including changes
in market dynamics, participants, product and service offerings,
retail formats and competitive positioning, risks associated with
new business areas and activities, risks associated with
acquisitions, divestitures, joint ventures and strategic
investments, including those relating to the asset acquisition from
Rite Aid and the sale of certain pharmaceutical wholesale
operations to AmerisourceBergen, the risks associated with the
integration of complex businesses, the impact of regulatory
restrictions and outcomes of legal and regulatory matters, and
risks associated with changes in laws, including those related to
tax law changes, regulations or interpretations thereof. These and
other risks, assumptions and uncertainties are described in Item 1A
(Risk Factors) of our Annual Report on Form 10-K for the fiscal
year ended August 31, 2020 and in other documents that we file or
furnish with the Securities and Exchange Commission. Should one or
more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those indicated or anticipated by such
forward-looking statements. All forward-looking statements we make
or that are made on our behalf are qualified by these cautionary
statements. Accordingly, you are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date they are made.
We do not undertake, and expressly disclaim, any duty or
obligation to update publicly any forward-looking statement after
the date of this release, whether as a result of new information,
future events, changes in assumptions or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210106005889/en/
Media Relations WBA: USA / Morry Smulevitz +1 847 315
0517 International +44 (0)20 7980 8585
VillageMD: Molly Lynch +1 773 505 9719
WBA Investor Relations Gerald Gradwell and Jay Spitzer +1
847 315 2922
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