Aug. 11, 2014, 2:32 PM
- Drugstore stocks are on the move as investors continue to shift assets into consumer staples stocks.
- Walgreen (WAG +2%), CVS Caremark (CVS +0.8%), and Rite Aid (RAD +1.8%) are all higher on the day.
- The trio is also helping lift the Consumer Staples ETF (NYSEARCA:XLP) to a 1% gain to stay ahead of broad market averages.
Aug. 6, 2014, 3:05 PM
- Execs with CVS Caremark (CVS -0.3%) cleared up some of the haze over what the impact of the exit of from the tobacco business will be during the firm's earnings call.
- CVS lost 110 bps from its front store comp sales mark during Q2 and the development contributed to an overall loss in market share for drugstore traffic.
- A 400-500 bp loss in front store sales growth is expected in Q3.
- Overall, CVS says it will lose $2B in annual sales from the tobacco decision.
- There isn't any specific guidance from the company on how much of the $2B will be made up and when by signing new healthcare services and provider deals.
- Earnings call transcript
Aug. 5, 2014, 7:01 AM
Aug. 4, 2014, 5:30 PM
- ACM, ACT, ADM, AEE, AKRX, ALLT, AME, AMSC, ANSS, ARCC, ARCO, ARQL, BCRX, BLMN, CIE, CLDT, CNK, COH, CRZO, CVC, CVS, DWRE, EMR, END, ENZY, EXH, EXLP, EXPD, FE, FUN, GLDD, GTIV, GTXI, HCLP, HCP, HEP, IART, IFF, IIVI, INFI, IT, KWK, LIN, LPX, MDU, MGM, MMP, MSI, MWW, MZOR, NILE, NNN, [[NTi]], NVDQ, NWN, ODP, OXF, OZM, PMC, RBA, REGN, RHP, RIGL, RTI, SCMP, SCOR, SMG, SNSS, SPAR, STE, TDG, VMC, VSI, VTG, WLK, WNR, ZBRA, ZTS
Jul. 30, 2014, 9:45 AM
- McKesson (MCK +0.1%) extends its distribution agreement with CVS Caremark (CVS -0.4%) through June 2019.
- EVP and Group President Paul Julian says, "We have a long track record of delivering comprehensive supply chain solutions to CVS Caremark which in turn allows CVS Caremark to ensure the highest level of pharmaceutical care to its customers. We are pleased to have extended our agreement with CVS Caremark and continue or long standing partnership."
Jul. 28, 2014, 9:03 AM
- Shares of Horizon Pharma (NASDAQ:HZNP) are off 29% premarket on heavy volume after it disclosed in a regulatory filing that CVS Caremark (NYSE:CVS) and Express Scripts (NASDAQ:ESRX) are dropping Duexis and Vimovo from their formularies. The products will be placed on their exclusion lists effective January 1, 2015.
- The company does not expect the actions to impact its financial guidance of $270M - 280M in net revenues and $80 - 90M in EBITDA for fiscal 2014, although 20 - 30% of the prescription volume is at risk.
- Horizon will include the effects of the situation in its 2015 guidance to be issued in Q4.
Jul. 14, 2014, 4:22 PM
Jul. 10, 2014, 2:25 PM
Jun. 30, 2014, 10:16 AM
- Ohio Governor John Kasich has issued an emergency order in Ohio to allow select Rite Aid (RAD +0.8%) pharmacies to administer the MMR vaccine.
- The state of Ohio has had an outbreak of over 300 cases of measles and more than 400 reported incidents of mumps.
- What to watch: The entry of drugstore operators (WAG, CVS) into more essential healthcare services is a significant part of the growth story in the sector.
Jun. 6, 2014, 11:37 AM
- Analysts say Humana (HUM +1.7%) is exploring strategic alternatives for its pharmacy benefit management business including an outright sale which could fetch as much as $7B. The unit is projected to generate ~$15.5B in revenues this year. Options other than a sale include renegotiating the pricing of generic drugs and outsourcing certain operations. Potential buyers may include CVS Caremark (CVS +0.6%), Express Scripts (ESRX +0.4%) and Catamaran (CTRX +1.1%).
May 23, 2014, 7:14 AM
- CVS Caremark (CVS) is still in talks for a deal to acquire Brazil's Drogarias Pacheco São Paulo after its first bid of $2B was rejected, according to the WSJ.
- DPSP reportedly wants a sale price of at least $2.2B.
- An acquisition of DPSP would give CVS a quick entry into the Latin America drugstore market.
May 22, 2014, 3:30 PM
May 19, 2014, 12:09 PM
May 15, 2014, 10:54 AM
- CVS Caremark (CVS -0.9%) announces it has entered a new clinical affiliation with four different regional healthcare systems.
- The new partners are Hartford HealthCare, Memorial Health, Lahey Health, and Baystate Health.
- The company says the new affiliations are the first to utilize clinical work with MinuteClinic (CVS' medicial clinic division) combined with work from CVS pharmacists.
May 2, 2014, 7:27 AM
- Revenues: $32.7B (+6.3%): Pharmacy Services: $20.2B (+10.3%) generic dispensing rate: 82.4% (+2.4%), Retail Pharmacy: $16.5B (+2.7%) generic dispensing rate: 82.9% (+ 2.1%).
- Net income: $1.1B (+18.3%), EPS: $0.95 (+23.3%).
- Retail pharmacy same store prescription volumes: +2.1%.
- Retail pharmacy same store sales: +1.4%.
- CF Ops: $2.2B (+34.1%).
- Q2 guidance:
- EPS: $1.01 $1.04.
- 2014 guidance:
- EPS: $4.09 - $4.23.
- CF Ops: $7.0B - $7.3B.
May 2, 2014, 7:18 AM
- CVS Caremark (CVS) reports revenue in its Pharmacy Services segment rose 10.3% to $20.2B in Q1.
- The Retail Pharmacy segment saw a 2.7% increase to $16.5B on a same-store sales gain of 1.4%.
- Gross profit rate improved by 70 bps for the Retail Pharmacy segment and 40 bps for the Pharmacy Services segment.
- A weaker flu season this year had an impact on the company's results.
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