Walgreens suspends the quarterly dividend in the middle of recovery efforts

(Reuters) -Walgreens Boots Alliance suspended its quarterly species dividend in the midst of restructuring efforts, the operator of the American pharmacy chain announced on Thursday, sending its shares decreasing by almost 8% of prolonged exchanges.

“The company’s cash needs in the coming years, in particular with regard to disputes and the refinancing of the debt, have been important considerations in the context of the decision to suspend the dividend,” said Walgreens in A press release.

The suspension of dividends is “cautious and somewhat late,” said Michael Cherny, Leerink Partners analyst.

“We consider this to be the right decision for Walgreens’ ability to restart the company, but the short -term dynamics are forced technical sale which will probably have to occur since the company will no longer generate income,” said declared Cherny.

The company sought to sell itself to the Sycamore Partners capital company and also contacted other potential buyers, according to the media. The company refused to comment on the reports.

The decision comes from weeks after the United States Ministry of Justice brought a legal action alleging that the pharmacy chain knowingly fulfilled millions of prescriptions that did not have a legitimate medical objective.

If he is tried responsible, Walgreens could incur civil sanctions up to $ 80,850 for each illegal prescription, according to the Ministry of Justice.

Walgreens, which operates the second largest chain of pharmacies in the United States, said it planned to close thousands of pressure stores by reimbursement rates of persistent drugs and high prices consumers.

The CEO, Tim Wentworth, has unveiled a series of changes, including a cost reduction program of $ 1 billion and exploration of options for its non -essential companies, while it tries to relaunch growth and resume the Trust of investors.

(Report by Mariam Sunny in Bengaluru; edition by Alan Barona)