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CVS Health Corporation (CVS)

  • 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.
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  • May. 22, 2014, 3:30 PM
    • The bid of about $2B for DPSP - Brazil's third-largest drugstore operator - was rejected, according to local magazine Exame. CVS is being advised by Patria Investimentos, while DPSP retained Morgan Stanley for counsel.
    • CVS +0.75%
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  • Feb. 28, 2014, 12:49 PM
    • Fred's (FRED +7.1%) has talked to Walgreen (WAG +0.1%), Dollar General(DG +0.2%) and CVS Caremark (CVS +1.5%) about a sale, according to a developing Bloomberg report.
    • The company is in the midst of a strategic review.
    • Shares of FRED have popped off the news.
  • 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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  • Nov. 27, 2013, 8:48 AM
    • CVS Caremark (CVS) beefs up its specialty pharmacy offerings, agreeing to buy specialty infusion services and enteral nutrition business Coram, LLC from Apria Healthcare for about $2.1B.
    • Coram is expected to generate about $1.4B in revenue in the first year following the deal's close (expected in Q1), but to have a negligible impact on CVS' overall 2014 results. The purchase is expected to add $0.03-$0.05 to EPS in 2015.
    • Press release
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  • Oct. 22, 2013, 2:44 PM
    • Talk has picked up that CVS Caremark (CVS +1.8%) and McKesson (MCK +1%) will make a joint bid for German pharmaceutical Celesio.
    • Earlier this month, negotiations between the three companies were reported.
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  • Sep. 27, 2011, 8:57 AM
    AmerisourceBergen (ABC) will acquire CVS Caremark's (CVS) TheraCom unit for $250M, expanding the drug wholesaler's consulting services offerings and pharmacy benefit reimbursement capabilities. TheraCom generates ~$700M in annual revenue, and the deal is expected to slightly boost ABC's 2013 earnings.
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  • Jul. 22, 2011, 8:49 AM
    Analysts see strong opposition to the $29B merger of Express Scripts (ESRX) and Medco (MHS), which would leave the industry with just one other independent company, CVS. “It’s going to be a very tough fight through the Federal Trade Commission,” industry consultant Adam Fein says, expecting pharmacists and drug makers to try to block the deal.
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  • Jul. 21, 2011, 1:08 PM
    Shares of retail pharmacies Walgreen (WAG -3.7%) and CVS (CVS +2.9%) move in opposite directions as a result of the merger of Express Scripts (ESRX +5.7%) and Medco (MHS +15.1%). With Medco and ESRX focused on integrating, CVS may be able to swipe some customers. But with WAG losing its contract with ESRX, it may have few alternatives for pharmacy benefit services.
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Company Description
CVS Health Corp iis an integrated pharmacy health care provider. The Company has three segments: Pharmacy Services, Retail Pharmacy and Corporate.
Sector: Services
Industry: Drug Stores
Country: United States