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Walgreens Boots Alliance, the American owner of Boots UK, could risk losing billions after a private equity firm interested in buying its UK high street pharmacy chain valued the retailer at a steep discount, The Telegraph reported on Monday (April 11). "Buyout funds CVC and Bain indicated that they were willing to pay just £4bn for the business," the newspaper said, adding that "the consortium bowed out of the running" in March. The US retail giant Walgreens, which acquired Boots in 2014 for £9bn, has put a £7bn price tag on the UK pharmacy retail chain after selling its wholesale arm, Alliance Healthcare, last year. Citing city sources, the newspaper said the low valuation of the pharmacy multiple was "significant" because CVC's UK operations were led by Dominic Murphy, a Walgreens board member involved with Boots for 15 years. "He (Murphy) knows where the bodies are buried," the newspaper quoted one City source as stating. A spokesperson for Boots confirmed that CVC and Bain never lodged a formal offer for the company.

Walgreens Boots Alliance on Tuesday (June 28) scrapped the plan to sell its UK high street pharmacy chain saying no third party was able to make an adequate offer due to the turmoil in global financial markets. Walgreens' move to call off the sale comes as private equity bidders Apollo Global and TDR faced headwinds in raising financing for the deal, as banks were wary of underwriting large chunks of the financing due to tough market conditions. Boots was initially valued at as much as £8bn with the auction process being led by Goldman Sachs. Global economic uncertainty and rising inflation have triggered a spike in interest rates as central banks have rushed to take action in the most widespread tightening of monetary policy for more than two decades, making deal financing costlier and harder to access. Walgreens had put its Boots UK business up for sale after announcing a strategic review in January as the second-largest US pharmacy chain renewed its focus on domestic healthcare. The company said the decision to retain Boots and No7 Beauty Company was also underpinned by their ongoing strong performance.

Walgreens Boots Alliance, the parent company of Boots UK, has begun a strategic review of its business in the United Kingdom, chief executive officer Rosalind Brewer said on Tuesday (January 11) - as the pharmacy chain tries to renew its focus on US healthcare. Boots has over 2,200 stores across the UK, which include pharmacies, health and beauty stores, among others, according to the chain's website. "This review is very much in line with our renewed priorities and strategic direction. In particular, our increased focus on US healthcare. While the process is at an exploratory stage, we do expect to move quickly," Brewer said at the JP Morgan Healthcare Conference. The review comes at a time when the company, which was formed in 2014 after the acquisition of stake in Alliance Boots by Walgreens, moves beyond its drugstores with its investments in two smaller healthcare providers, CareCentrix and VillageMD.

The American healthcare company, CVS Health, has decided to remove the cold and cough pills containing phenylephrine from the drug stores. The following decision comes after the health regulator, the US Food and Drug Administration (FDA) determines the decongestant is ineffective towards flu if taken orally. However, when ingested in pill or tablet form, this ingredient fails to reach its destination from the stomach to the nasal passages. CVS Health spokesperson told USA Today, "We are removing a small number of oral decongestant products that contain phenylephrine as the only active ingredient from CVS Pharmacy stores but will continue offering many other oral cough and cold products to meet consumer needs." They almost run more than 9,000 stores in the US whereas their rival, Walgreens has not yet taken the step to remove over-the-counter medications from their shelves.