News

CVS Health reaches Q1 net revenue of $43.2 billion on 18.9% growth

BY Michael Johnsen
WOONSOCKET, R.I. – On Tuesday, CVS Health reported a first quarter net revenue increase of 18.9% to $43.2 billion for the three months ended March 31. Revenues in the Pharmacy Services Segment increased 20.5% to $28.8 billion, primarily driven by increase in prescription volume and growth in specialty pharmacy. 
 
"We posted solid results this quarter and are off to a strong start in 2016," stated Larry Merlo, president and CEO. "Operating profit in the retail business was in line with our expectations while operating profit in the PBM exceeded our expectations, driven by strong prescription volumes," he said. "Our distinctive, channel-agnostic solutions are resonating strongly in the market as they continue to control patient and client costs while improving health outcomes. We continue to believe we have the right strategy for success in the evolving health care marketplace." 
 
Revenues in the Retail/LTC Segment increased 18.6% to $20.1 billion thanks to the addition of the long-term care operations acquired as part of the acquisition of Omnicare in August 2015, the addition of the pharmacies and clinics of Target acquired in December 2015 and pharmacy same store sales growth. 
 
Same store sales increased 4.2% versus the first quarter of last year. Same store sales were positively affected by approximately 125 basis points due to an additional day in 2016 related to leap year. Pharmacy same store sales rose 5.5% and pharmacy same store prescription volumes rose 5.9% on a 30-day equivalent basis. Pharmacy same store sales were negatively affected by approximately 360 basis points from recent generic drug introductions, and positively affected by approximately 130 basis points from the additional day in 2016 related to leap year. 
 
Front store same store sales increased 0.7%. Front store same store sales were negatively affected by softer customer traffic, partially offset by an increase in basket size and the shift of Easter from April in 2015 to March in 2016, which positively affected front store same store sales by approximately 80 basis points. Front store same store sales were also positively affected by approximately 105 basis points from the additional day in 2016 related to leap year.
 
For the three months ended March 31, 2016, the generic dispensing rate increased approximately 170 basis points to 85.2% in the Pharmacy Services Segment and increased approximately 125 basis points to 85.7% in the Retail/LTC Segment.
 
Net income for quarter was down 6.1%, primarily driven by an increase in interest expense of $149 million and $61 million of acquisition-related integration costs, partially offset by an increase in operating profit. The increase in interest expense is primarily due to the issuance of $15 billion of long-term debt in July 2015 that was used to acquire Omnicare and the pharmacies and clinics of Target, as well as the debt assumed through the acquisition of Omnicare in August 2015.
 
Adjusted earnings per share for the three months ended March 31, 2016 $1.18, up from $1.14 for the three months ended March 31, 2015. GAAP earnings per diluted share for the three months ended March 31, 2016 was $1.04, compared to $1.07 in the prior year.
 
 
 
 
 
keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

CVS Health expands Hepatitis care offerings in Hawaii

BY Gina Acosta

 

WOONSOCKET, R.I. — CVS Health has launched expanded health care services to support the health and well-being of people with Hepatitis B, Hepatitis C and other liver diseases in Hawaii.

The effort is part of a statewide initiative to raise awareness about the prevalence of Hepatitis A, B and C in the state and to encourage the prevention, diagnosis and treatment of viral hepatitis.

"It's critical that people who may have been exposed to hepatitis be screened for the virus," said Andrew Sussman, M.D., president of MinuteClinic and associate chief medical officer of CVS Health. "The longer people live with the virus, the more likely they are to develop serious, life-threatening conditions such as liver disease."

Added Sussman, "A simple screening will not only help them learn if they are infected, but can also help them get referred to life-saving care and treatment. We're happy to be able to provide this important screening to people living in Hawaii, which will help them on their path to better health." 

MinuteClinic locations in Hawaii recently began offering Hepatitis C screenings to people who may have been exposed to the hepatitis virus. The virus is spread through direct blood-to-blood contact with someone who has Hepatitis C. The most common way to get Hepatitis C is through injected drug use, getting a blood transfusion prior to 1992, or being exposed to blood in some other way. While there is no vaccine available to prevent Hepatitis C, treatments are available to manage and even cure Hepatitis C for some patients. The cost of a Hepatitis C screening consultation at Minute Clinic ranges from $59-$69, plus $39 for the Hepatitis C blood test.

Viral hepatitis, a collection of viruses that attack the liver, may lead to liver disease and liver cancer. Hawaii has the nation's highest rate of liver cancer, so testing and vaccinations have become increasingly important for people living on the islands. In response, CVS Health, through its Longs Drugs and MinuteClinic locations in Hawaii, has launched new services to help raise awareness of the virus, particularly for Baby Boomers (people born from 1945-1965) who may be at risk for the virus.

 

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

Snuggle makes a big ‘Snifference’ in the laundry aisle

BY Gina Acosta

WILTON, Conn. — A brand known for softening laundry for over 30 years is taking category leadership and innovation to the next level with two new product introductions.

The Snuggle brand has rolled out two new product lines: Snuggle PLUS SuperFresh and Snuggle Cherry Blossom Collection.

“Snuggle has long been a leader in championing breakthrough innovations that make a big ‘Snifference’ in the everyday lives of consumers,” said Bibie Wu, VP of marketing for Snuggle. “With Snuggle PLUS SuperFresh and the Cherry Blossom Collection, we help families say ‘good-bye’ to laundry odor and ‘hello’ to the scent of spring.”

Snuggle PLUS SuperFresh fabric conditioner contains patented odor-eliminating technology that absorbs and neutralizes malodors, and then infuses laundry with long-lasting freshness and Snuggly Softness. 

The new Snuggle Cherry Blossom Collection was inspired by the growing popularity of this fragrant harbinger of spring. 

The new Snuggle PLUS SuperFresh and Snuggle Cherry Blossom Collection products are now available at retailers nationwide.

 

Visit www.snuggle.com, like Snuggle on Facebook and follow on Twitter and Instagram for more information.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?