DEERFIELD, Ill. - Walgreens has been granted up to $25 million to conduct a Phase IV observational study on COVID-19 vaccine effectiveness, the company announced today. This study, funded by the Biomedical Advanced Research and Development Authority (BARDA), aims to assess Correlates of Protection (CoP) using data from FDA-authorized COVID-19 vaccines.
The study is a part of the Rapid Response Partnership Vehicle (RRPV) and is backed by the Administration for Strategic Preparedness and Response (ASPR) in the U.S. Department of Health and Human Services (HHS). It represents a collaborative effort to advance public health by leveraging Walgreens' extensive network of community pharmacies for improved access and diversity in clinical trials.
With a history of administering over 90 million COVID-19 vaccinations, Walgreens has demonstrated its capability in managing significant health initiatives. The current BARDA-funded study will engage select Walgreens pharmacies as clinical trial sites to evaluate the efficacy of authorized COVID-19 vaccines. The initiative emphasizes increasing participation in clinical research from diverse populations, focusing on areas historically underrepresented in clinical trials.
Ramita Tandon, Chief Clinical Trials Officer at Walgreens, expressed the company's honor in being chosen for the study, emphasizing its commitment to enhancing public health preparedness. Walgreens intends to utilize its decentralized clinical trial infrastructure and dedicated research staff for the study.
The project plans to enroll up to 4,000 participants across 20 retail pharmacy locations nationwide, ensuring a representative sample. Participant recruitment will capitalize on Walgreens' physical presence and its secure decentralized clinical trial platform.
This award is part of Project NextGen, a $5 billion HHS initiative to develop new vaccines and therapeutics offering broader protection against COVID-19, including emerging variants.
Walgreens, a division of Walgreens Boots Alliance, Inc. (NASDAQ:WBA), operates nearly 9,000 retail locations across the U.S. and Puerto Rico, providing a range of pharmacy and healthcare services.
This information is based on a press release statement from Walgreens.
In other recent news, Walgreens Boots Alliance has appointed healthcare strategy expert Dr. William H. Shrank to its board of directors. This move comes amid a series of executive appointments aimed at enhancing the company's healthcare expertise and follows a challenging fiscal year 2024 due to industry headwinds.
Walgreens' third-quarter earnings for fiscal year 2024 revealed an adjusted earnings per share (EPS) of $0.63, falling short of expectations, leading to a revised full-year outlook of $2.80 to $2.95 EPS. In response, several analyst firms, including RBC Capital Markets, TD Cowen, Truist Securities, and Mizuho Securities, adjusted their price targets for Walgreens shares, while maintaining their respective ratings.
In addition to board changes, Walgreens is implementing strategic measures to improve its financial performance and market position. These measures include accelerated store closures, reconfiguring retail experiences, simplifying U.S. healthcare operations, and considering closing up to 25% of its stores based on cash flow analysis.
The company is also planning to refine its business model and invest in sectors like Boots UK and VillageMD.
InvestingPro Insights
As Walgreens takes on a pivotal role in advancing public health through a significant COVID-19 vaccine study, its financial health and market performance remain a focal point for investors. According to the latest data from InvestingPro, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) presents an intriguing financial landscape.
The company's market capitalization stands at a robust $9.76 billion, reflecting its substantial size and influence in the healthcare sector. Despite the challenges faced over the past year, Walgreens has managed to generate a staggering $145.53 billion in revenue over the last twelve months as of Q3 2023, marking a growth of 6.92%. This revenue growth is supported by a gross profit of $26.75 billion, translating to a gross profit margin of 18.38%, which underscores the company's ability to maintain profitability in its operations.
InvestingPro Tips suggest that while the P/E ratio currently sits at -1.67, indicating market skepticism about future earnings, the company's dividend yield as of 2024 is 8.85%, which may attract income-focused investors. Moreover, the fair value estimation by InvestingPro stands at $15.77, suggesting potential undervaluation at the previous close price of $11.3. Investors looking for comprehensive analysis and additional insights can access more InvestingPro Tips, which provide in-depth financial metrics and forecasts.
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