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Dec. 16, 2015, 8:12 AM
- The $1.9B deal has CVS Health (NYSE:CVS) adding Target's (NYSE:TGT) 1,672 pharmacies across 47 states, and CVS will operate them through a store-within-a-store format, branded as CVS/pharmacy. In addition, this brand will be included in all new Targets offering pharmacy services, and 79 Target clinic locations will be rebranded as MinuteClinic.
- Target will recognize a pretax gain of $575M-$775M in Q4 (though will be excluded from adjusted EPS). Q4 revenues will be cut by about $500M.
- The sale isn't expected to change Q4 comp sales.
- After-tax net proceeds will be about $1.2B, which will be deployed over time into capital priorities, including buybacks. The deal is expected to be accretive to EBITDA and EBIT margin rates, and had 50 basis points or more to return on invested capital over time.
- This deal and more will be discussed at CVS' investor day today.
- Source: Press release
- TGT +0.9%, CVS +2.05% premarket.
- See also: CVS raises its outlook and boosts the dividend.
Oct. 29, 2015, 3:54 PM
- According to CNBC, CVS Health (CVS +0.3%) has kicked Philidor Rx out of its network for some sort of "noncompliance" with its provider agreement. Option holder Valeant Pharmaceuticals (VRX -4.6%) is down on the news.
- Previously: Notes from Valeant's conference call (Oct. 26)
- Previously: Valeant confirms appropriateness of accounting (Oct. 26)
Aug. 4, 2015, 7:03 AM
- CVS Health (NYSE:CVS): Q2 EPS of $1.22 beats by $0.02.
- Revenue of $37.17B (+7.4% Y/Y) in-line.
Jun. 15, 2015, 8:05 AM
- CVS Health (NYSE:CVS) announces it will trim its share repurchase guidance to $5B from a prior level of $6B.
- The action will help the company keep its target adjusted debt to EBITDA leverage ratio at approximately 3.2 after the acquisitions of Omnicare and Target's pharmacy businesses close.
- Previously: Target and CVS Health sign major partnership
- CVS +0.8% premarket to $102.99 following the Target announcement.
May 21, 2015, 7:32 AM
- CVS Health (NYSE:CVS) confirms it will acquire Omnicare (NYSE:OCR) for $98 per share in a deal valued at $12.7B.
- The transaction is expected to close near the end of the year.
- The company sees the purchase adding $0.20 to EPS in 2016
- Previously: Bloomberg: CVS in advanced talks to buy Omnicare
- OCR +1.39% premarket to $95.95.
- CVS +1.77% premarket to $103.06.
May 20, 2015, 6:15 PM
- CVS is in advanced talks to buy nursing home pharmacy owner Omnicare (NYSE:OCR) and could reach a deal as soon as this week, sources tell Bloomberg.
- Omnicare hired advisors to find a buyer earlier this year. In April, Bloomberg reported CVS was one of several interested parties.
- OCR +5.7% AH to $100.00. CVS +0.5% to $101.80.
Feb. 10, 2015, 7:18 AM
- CVS Health (NYSE:CVS) reports revenue in its pharmacy segment rose 21.7% to $23.9B in Q4 with acquisition playing a factor.
- Pharmacy network claims processed rose 8.2% to 221.6M during the period.
- Retail pharmacy sales +2.9% to $17.7B.
- Retail comparable-store sales +1.6% with the front end store comp dragged down by the tobacco exit.
- Gross profit rate +70 bps to 31.4%.
- Operating profit rate +40 bps to 10.1%.
- CVS +1.85% premarket.
Jan. 5, 2015, 12:57 PM
- CVS Health (CVS -1.3%) bestows Preferred Status to Gilead Sciences' (GILD +2.3%) Sovaldi (sofosbuvir) and Harvoni (ledipasvir/sofosbuvir) for the treatment of HCV infection. The pills will be the exclusive treatment option for beneficiaries on CVS's Medicare, Medicaid and other drug benefit plans. AbbVie's (ABBV -2.9%) Viekira Pak will be available only via a medical exception or prior authorization. Recently, AbbVie announced a similar deal with Express Scripts.
- Previously: AbbVie's new hepatitis C drug gets boost (Dec. 22, 2014)
Dec. 16, 2014, 7:42 AM
- CVS Health (NYSE:CVS) approves a new $10B share buyback program on top of a quarterly dividend boost to $0.35/share.
- The company sees FY15 EPS of $5.05-$5.19 vs. $5.11 consensus.
- Free cash flow of $5.9B to $6.2B is expected to be generated next year.
- CVS +0.2% premarket.
Sep. 18, 2014, 9:30 AM| Sep. 18, 2014, 9:30 AM | 1 Comment
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.
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.
Feb. 28, 2014, 12:49 PM
Feb. 10, 2014, 2:19 PM
- Arena Pharmaceuticals (ARNA +4.9%) and Japanese partner say their Belviq weight loss drug will be available to more people thanks to an agreement with pharmacy benefits manager CVS Caremark (CVS +0.6%), which means more than half of all Americans with insurance should now have access to the drug.
- Aetna (AET) recently announced it would offer Belviq as a preferred brand to eligible patients as part of its pilot program to self-insured plan sponsors.
- Belviq is approved for use in adults who are obese or who are overweight and have at least one serious medical condition, such as diabetes or high cholesterol.
Feb. 5, 2014, 7:29 AM
- CVS Caremark (CVS) says it will stop selling tobacco products by October 1, 2014.
- The company estimates it will lose $2B in annual revenue and $0.17 in profit per year. The impact on 2014 EPS will be $0.06-$0.08.
- The end game is that CVS could be in a much position than Walgreen (WAG) or Rite Aid (RAD) to strike deals with medical groups and insurance companies.
- CVS -1.7% premarket
Nov. 27, 2013, 11:00 AM
- CVS Caremark's (CVS) agreement to acquire Coram, the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group, for approximately $2.1B will strengthen its position relative to market leader Walgreens (WAG), Wells Fargo says.
- "This transaction should strengthen CVS' positioning in the specialty pharmaceutical business, which we believe is increasingly critical in driving growth for the PBMs, particularly as we believe historical sources of earnings growth taper (including generics and mail order). Walgreens is currently the market leader in the specialty pharmacy business, followed closely by CVS and the acquisition of Coram should strengthen CVS' positioning."
- "Prior to Caremark being solely a PBM, it was one of the largest home infusion therapy companies in the country, but Caremark sold these assets in 1995 to Coram for about $310M in cash and preferred stock, with estimated revenues of under $500M. Today's announcement will bring back this business despite the now resolved litigated history regarding the original sale, though Coram is now considerably larger and includes ambulatory infusion sites."
- Coram peer BioScrip (BIOS) is +20% today, a move that appears directly related to the acquisition of Coram.
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