CVS Caremark reported a drop in front-store sales as a result of its decision to phase out tobacco products, but pharmacy sales drove second-quarter earnings past Wall Street expectations.
CVS reported second-quarter earnings increased 11%. CVS officials attributed the earnings increase to specialty drug sales through its retail outlets and its pharmacy benefits manager (PBM).
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CVS reported that revenue from its PBM increased 16%. Operating profits from the PBM jumped 30%. Pharmacy same-store sales increased 5%, driving overall same-store sales up 3.3%.
CVS CEO Larry Merlo said the PBM gives the company a chance to "not just manage the specialty drug but manage the specialty patient."
CVS reported second-quarter earnings of $1.25 billion, or $1.06 per share. Last year’s second quarter produced $1.12 billion, or 91 cents per share.
Overall, CVS reported second-quarter revenues of $34.6 billion, up significantly from last year’s $31.25 billion second-quarter earnings.
The earnings increase came despite a 0.4% decrease in front-store sales. CVS said front-store sales would have been 110 basis points higher if tobacco sales had been excluded.
- See more at: http://drugtopics.modernmedicine.co...et-lost-tobacco-revenues#sthash.BedPZRsR.dpuf
CVS reported second-quarter earnings increased 11%. CVS officials attributed the earnings increase to specialty drug sales through its retail outlets and its pharmacy benefits manager (PBM).
See Drug Topics’ Stories of the Month
CVS reported that revenue from its PBM increased 16%. Operating profits from the PBM jumped 30%. Pharmacy same-store sales increased 5%, driving overall same-store sales up 3.3%.
CVS CEO Larry Merlo said the PBM gives the company a chance to "not just manage the specialty drug but manage the specialty patient."
CVS reported second-quarter earnings of $1.25 billion, or $1.06 per share. Last year’s second quarter produced $1.12 billion, or 91 cents per share.
Overall, CVS reported second-quarter revenues of $34.6 billion, up significantly from last year’s $31.25 billion second-quarter earnings.
The earnings increase came despite a 0.4% decrease in front-store sales. CVS said front-store sales would have been 110 basis points higher if tobacco sales had been excluded.
- See more at: http://drugtopics.modernmedicine.co...et-lost-tobacco-revenues#sthash.BedPZRsR.dpuf
