Pharmacy Retailer Giant Walgreens Considers Former Cigna Exec For CEO Role

Walgreens Boots Alliance Inc. WBA is reportedly considering appointing Tim Wentworth, a former executive at Cigna Group CI, as its next CEO amid a search for leadership following the abrupt departure of Rosalind Brewer. 

Walgreens has found itself needing a new chief after Brewer, an established figure in the retail sector, left her position unexpectedly at the end of August, following a brief tenure of two-and-a-half years. 

Ginger Graham, the company's lead independent director, assumed the role of interim CEO. 

The retail giant is not only grappling with competition from e-commerce behemoth Amazon.com AMZN and retail titan Walmart Inc WMT but is also lagging behind its main competitor, CVS Health Corp. CVS, which has gained significant ground following its acquisition of insurance colossus Aetna.

Walgreens expects FY23 adjusted EPS to be at or near the low end of its previously stated range. 

During its Q3 earnings release, Walgreens lowered its FY23 adjusted EPS guidance to $4.00-$4.05 from the previous $4.45 - $4.65 (versus the consensus of $4.45) to account for consumer and category conditions, lower COVID-19 contribution, and a more cautious macroeconomic forward view.

Wentworth, who played an instrumental role in Express Scripts/Cigna's $53 billion deal, could bring a fresh perspective and strategy, Bloomberg noted. 

He led Cigna's Evernorth health services segment post-merger before retiring in February 2022, although a non-compete clause binds him until February 2024.

Price Action: WBA shares are up 6.70% at $22.31 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.