THE WHAT?  Walgreens Boots Alliance’s Executive Chair, Stefano Pessina, has allegedly experienced a substantial financial hit, with US$2.2 billion wiped from his fortune following a sharp decline in the company’s market value. Pessina, the largest shareholder of the American pharmacy chain, saw his holdings fall from US$4.4 billion to US$2.2 billion over the past year.

THE DETAILS  According to financial data firm FactSet, reported by The Times, Walgreens Boots Alliance shares have dropped 40% over the past 12 months, a period during which the S&P 500 index gained 9%. Last week, the company’s stock reached its lowest point since before the millennium, plummeting to US$14.63. The company also reported operating losses of US$13.2 billion in the second quarter of the 2024 fiscal year, significantly higher than the US$6 billion drop in the previous year.

THE WHY?  The significant decline in Walgreens Boots Alliance’s market value and its ongoing financial struggles highlight the challenging environment the company is facing. The substantial reduction in Pessina’s fortune underscores the broader impact on shareholders and the urgent need for strategic decisions to stabilize the company’s financial position. The potential sale of Boots could be a pivotal move to mitigate losses and refocus the company’s efforts on its core markets.