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CVS Health Retains PBM Clients And Revenue Jumps 20%
Buoyed by new business from its pharmacy benefit manager and its specialty prescription business, CVS Health’s revenue soared nearly 20% in all key segments of company operations, helping the retail drugstore giant to beat first-quarter earnings expectations.
CVS Health said net revenue jumped nearly 19% to $43.2 billion in the first quarter of this yearthanks to growth of its Caremark pharmacy benefit management division, which helps administer prescription benefits for employers and government health programs. Excluding acquisition costs and other special items, CVS reported adjusted earnings per share that rose 4% to $1.18, which was ahead of what analysts expected.
CVS Health chief executive officer Larry Merlo said during a 75-minute call with analysts this morning that it is retaining its PBM clients at a rate of 97%, which bodes well for business in 2017 and beyond. “Our contract wins have grown for the 2016 PBM selling season and our 2017 season is off to a solid start with some early wins,” Merlo said.
COVER STORYStart Up Star: Ashton Kutcher
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Bruce Japsen
CONTRIBUTOR
I write about health care and policies from the president's hometown
Buoyed by new business from its pharmacy benefit manager and its specialty prescription business, CVS Health’s revenue soared nearly 20% in all key segments of company operations, helping the retail drugstore giant to beat first-quarter earnings expectations.
CVS Health said net revenue jumped nearly 19% to $43.2 billion in the first quarter of this yearthanks to growth of its Caremark pharmacy benefit management division, which helps administer prescription benefits for employers and government health programs. Excluding acquisition costs and other special items, CVS reported adjusted earnings per share that rose 4% to $1.18, which was ahead of what analysts expected.
CVS Health chief executive officer Larry Merlo said during a 75-minute call with analysts this morning that it is retaining its PBM clients at a rate of 97%, which bodes well for business in 2017 and beyond. “Our contract wins have grown for the 2016 PBM selling season and our 2017 season is off to a solid start with some early wins,” Merlo said.
Larry Merlo, chief executive of CVS Health Corp., center, applauds as he listens to President Barack Obama deliver the State of the Union address to a joint session of Congress Jan. 20, 2015. Photographer: Andrew Harrer/Bloomberg
CDWVoice
[paste:font size="4"]Walgreens Boots Alliancedoesn’t operate a similar business in the competitive field of managing prescriptions for employers and the government. Rival PBMs include Express Scriptsand UnitedHealth Group’s OptumRx.
Buoyed by new business from its pharmacy benefit manager and its specialty prescription business, CVS Health’s revenue soared nearly 20% in all key segments of company operations, helping the retail drugstore giant to beat first-quarter earnings expectations.
CVS Health said net revenue jumped nearly 19% to $43.2 billion in the first quarter of this yearthanks to growth of its Caremark pharmacy benefit management division, which helps administer prescription benefits for employers and government health programs. Excluding acquisition costs and other special items, CVS reported adjusted earnings per share that rose 4% to $1.18, which was ahead of what analysts expected.
CVS Health chief executive officer Larry Merlo said during a 75-minute call with analysts this morning that it is retaining its PBM clients at a rate of 97%, which bodes well for business in 2017 and beyond. “Our contract wins have grown for the 2016 PBM selling season and our 2017 season is off to a solid start with some early wins,” Merlo said.
COVER STORYStart Up Star: Ashton Kutcher
log in or sign up to comment.
+ FOLLOW THE CONVERSATION
Bruce Japsen
CONTRIBUTOR
I write about health care and policies from the president's hometown
Buoyed by new business from its pharmacy benefit manager and its specialty prescription business, CVS Health’s revenue soared nearly 20% in all key segments of company operations, helping the retail drugstore giant to beat first-quarter earnings expectations.
CVS Health said net revenue jumped nearly 19% to $43.2 billion in the first quarter of this yearthanks to growth of its Caremark pharmacy benefit management division, which helps administer prescription benefits for employers and government health programs. Excluding acquisition costs and other special items, CVS reported adjusted earnings per share that rose 4% to $1.18, which was ahead of what analysts expected.
CVS Health chief executive officer Larry Merlo said during a 75-minute call with analysts this morning that it is retaining its PBM clients at a rate of 97%, which bodes well for business in 2017 and beyond. “Our contract wins have grown for the 2016 PBM selling season and our 2017 season is off to a solid start with some early wins,” Merlo said.
Larry Merlo, chief executive of CVS Health Corp., center, applauds as he listens to President Barack Obama deliver the State of the Union address to a joint session of Congress Jan. 20, 2015. Photographer: Andrew Harrer/Bloomberg
CDWVoice
[paste:font size="4"]Walgreens Boots Alliancedoesn’t operate a similar business in the competitive field of managing prescriptions for employers and the government. Rival PBMs include Express Scriptsand UnitedHealth Group’s OptumRx.
