Walgreens Boots Alliance Inc (NASDAQ:WBA, ETR:W8A) (WBA) shares tumbled more than 12% after the pharmacy chain announced the suspension of its quarterly cash dividend in a bid to conserve cash amid financial pressures.
The company faces a lawsuit from the US Department of Justice which accuses it of dispensing millions of unlawful prescriptions and needs to refinance its debt.
Walgreens said it is focused on a retail pharmacy-led turnaround with a sustainable economic model, considering its upcoming cash needs, including litigation and debt refinancing.
“WBA leadership remains focused on successfully executing against its strategic priorities and maintaining financial discipline, which it believes will deliver sustained value creation over the long term,” the company said in a statement.
Shares of Walgreens fell 12.4% to about $10 late morning on Friday, and are down 55.5% in the last 12 months.