No company in their right mind would buy that mess with the debt load and all the problems. I just don't see how CVS can continue taking these huge losses every year. I still think they may close it down at some point, but maybe that's not possible?
Exactly what @1kpk+1pu0Rsi4 said. We're stuck with a failure. And the employees are the ones paying the price.
Those “losses” aren’t operating losses. They are one time write downs of the value of the assets. When you buy a company for $9 billion or whatever … $9 billion goes onto your balance sheet somewhere.. if you realize it’s not actually worth that you need to write it down in value. That’s not a loss that perpetuates. But also this past earnings they said they no longer see it feasible that they will be able sell it in the short term… so it’s not getting sold anytime soon.
From the sale story November 2022 is the only number I've seen recently.
Woonsocket, RI-based CVS Health plans to sell its long-term care pharmacy business, Cincinnati-based Omnicare, reporting a $2.5 billion loss related to it in the third quarter, the company announced Wednesday.
$2.5 billion? In one quarter? Unbelievable.
There is an article where CVS had to pay money for an opiod lawsuit. It was billions of dollars.
Is CVS in debt because of Omnicare?
Omnicare was not even mentioned once in the townhall. Not good