Walgreens Boots Alliance Inc (NASDAQ:WBA) shares shed nearly 5% in pre-market deals in New York on Thursday as the drugstore chain giant swung to a loss in its first quarter as the company took a US$6.5 billion charge for opioid litigation.
In the three months to end-November 2022, the company posted a loss per share of US$4.31, compared to earnings per share (EPS) of US$4.13 in the year-earlier quarter.
Late last year, Walgreens together with rivals CVS Health Corp and Walmart Inc agreed to pay around US$13.8 billion to resolve US state and local lawsuits, which accused the pharmacy chains of mishandling opioid pain drug sales.
READ: Walmart, Walgreens and CVS agree to pay $13.8B to settle US opioid claims
Despite this, sales at Walgreens in the first quarter rose to US$33.38 billion, down slightly from the $33.9 billion posted a year earlier, due to an early flu season and strong demand for cough and cold medicine.
The company also raised its full-year sales guidance to US$137.5 billion from $133.5 billion to reflect its recently closed US$8.9 billion acquisition of Summit Health, refreshed currency rates, and that first-quarter sales came in ahead of expectations.
The company is also currently acquiring CareCentrix, which coordinates home care for patients after they are discharged from hospital, and Shields Health Solutions, a specialty pharmacy company.
In New York before the bell, Walgreens shares lost 4.76% to stand at US$35.70 each.
Contact the writer at giles@proactiveinvestors.com