Walgreens has been struggling on life support for a while now. They cut their dividend and announced they might be closing 1/4 of their stores. Well it looks like closing only 1/4 of the stores is quite optimistic.
Something new was announced yesterday that flew under the radar. The CDC cancelled their meeting to select new flu strains for new years flu vaccine:
https://www.nbcnews.com/health/health-news/fda-cancels-meeting-select-flu-strains-seasons-shots-rcna193931
No big deal, right?
Actually this may be pretty consequential, with one committee member speculating we may not select flu strains this year:
https://www.nytimes.com/2025/02/26/us/politics/fda-flu-vaccine.html
Flu shots are a HUGE part of Walgreens business. Pretty much everything else loses money, but flu shots have been keeping the lights on. Now it looks like there is a huge doubt whether there will even be a flu shot for Walgreens to give next season.
Remember when I said Walgreens was on life support? I think someone just pulled the plug and nobody realizes the patient isn't breathing.
Postition: I bought 200 put contracts for 1/16/26 at $7.50.
I will upload a screenshot shortly.
Also, full disclosure: I am a pharmacist and worked with Walgreens for 6 years.
