Walgreens Boots Alliance, a leading U.S. pharmacy chain operator, has named Tim Wentworth as its CEO in a strategic move aimed at revitalizing its stock performance and addressing recent profit declines. Wentworth, a seasoned veteran in the healthcare industry, brings a wealth of experience to the role, having previously served as the top executive of pharmacy benefit manager (PBM) Express Scripts before its acquisition by Cigna.
In his capacity as CEO, Wentworth will lead Walgreens in its efforts to diversify its healthcare services, a pivotal aspect of the company’s strategic vision. Walgreens faces challenges, including decreasing revenues from COVID-19 vaccinations and testing, alongside reduced consumer spending due to concerns about inflation. The company’s shares have experienced a decline of approximately 40% this year.
J.P. Morgan analyst Lisa Gill expressed confidence in Wentworth’s appointment, noting his strong track record in healthcare services as a solid foundation for addressing the intricacies currently faced by Walgreens.
Before joining Walgreens, Tim Wentworth served as the CEO of Cigna’s health services unit, Evernorth, until his retirement in 2021. His extensive leadership experience in the healthcare sector positions him well to lead Walgreens into a new era of growth and innovation.
This transition follows the unexpected departure of Rosalind Brewer, who served as CEO of Walgreens for less than three years. While the details of Brewer’s departure were not disclosed, it was described as a mutual decision. During her tenure, the company’s share price experienced a significant decline, necessitating a change in leadership.
As part of its strategic initiatives to diversify, Walgreens has made several acquisitions in recent years, including healthcare services operator VillageMD and urgent-care provider Summit Health. The company has also undertaken efforts to streamline its operations, including store closures and job reductions.
In addition, reports suggest that some Walgreens pharmacy employees in the U.S. are planning a walkout between Monday and Wednesday. The appointment of Tim Wentworth as CEO marks a pivotal moment for the company as it seeks to reposition itself in the healthcare and retail sectors.
