(Bloomberg) -- Walgreens Boots Alliance Inc. invested $5.2 billion in primary-care provider VillageMD, doubling its stake in the company to 63%.
The deal will increase the number of primary-care practices located at Walgreens chain stores to more than 600 in thirty U.S. markets, the companies said in a statement. That number will rise to 1,000 by 2027, with more than half the practices located in underserved communities, the companies said.
Walgreens is raising its profile in value-based primary care, a quickly growing segment of the health-care market worth about $1 trillion. The collaboration will help more people in both urban and rural communities with poor access to health care, according to the statement.
Walgreens shares fell 3.3% as of 9:44 a.m. in New York. They had risen 19% this year through Wednesday.
Walgreens separately released quarterly results today that beat analysts’ estimates. Profit for the fiscal fourth quarter was $1.17 a share, with sales of $34.3 billion, according to a statement Thursday. Analysts had expected adjusted earnings of $1 a share and revenue of $33.1 billion, according to estimates compiled by Bloomberg.
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