Walgreens CEO Resigns as Company Doubles Down on Efforts to Transform Into Healthcare Provider

Walgreens Boots Alliance said on Friday, September 1, that Roz Brewer has resigned from her position as chief executive officer of the firm. This comes as the company focuses more intently on its ambition to transition from a chain of pharmacies to a health care provider.

On Thursday, August 31, she also resigned from the company's board of directors. A press announcement claims that the split was amicable.

Premarket trading saw a little decline in Walgreens stock.

(Photo: Stephen Brashear / Getty Images)
Walgreens announced that CEO Roz Brewer has resigned while the firm pursues its transition to be a healthcare company.

Interim CEO

While Walgreens seeks a permanent successor, lead independent director Ginger Graham will serve in the role of temporary CEO. Graham has worked in the medical field for many years. She has prior executive leadership experience at Amylin Pharmaceuticals.

Until a permanent CEO is chosen, the organization may rely on Brewer's counsel.

"Our Board and leadership team will intensify our focus on creating value for our customers and our shareholders while we advance the search for a successor with deep healthcare experience to lead in today's dynamic environment," stated Stefano Pessina, executive chairman at Walgreens.

Graham was appointed lead independent director of Walgreens in October 2022 after serving on the board since 2010. Her career began with Eli Lilly and Company, and she has since served on the boards of many other hospitals and medical organizations.

Brewer and Walgreens

Before Friday's statement, things had been tense between Brewer and Walgreens, according to CNBC.

As of Thursday's closing, Walgreens' stock had fallen by more than 32% this year, as the business has failed to recover from a precipitous decline in demand for COVID testing and vaccinations. Since customers can purchase and get toiletries like toothpaste and shampoo from rivals like Walmart and Amazon, the company has witnessed a steady decrease in its front-end retail revenues.

For the first time since July 2020, the company's fiscal third-quarter profits report fell short of Wall Street projections in June. It also reduced its forecast for the year's profits.

Brewer has managed Walgreens since March 2021 and previously worked at Walmart and Starbucks. Her short employment coincided with a significant portion of the COVID-19 pandemic, at which time Walgreens actively pushed a move that would rebrand the firm as a health care provider rather than a drugstore. It has hundreds of clinics operational, some of which are located in close proximity to Walgreens shops after it bought primary care provider VillageMD.

In addition, an agreement was reached with specialized pharmacy Shields Health Solutions and post-hospital care management firm CareCentrix.

When it comes to consumer goods, Brewer has been a major player in the retail industry for decades. However, as Walgreens shifts its focus from being a pharmacy to a health care provider, her expertise is no longer a good fit for the organization.