CVS beats on higher prescription drug sales, shares up 4 percent

A CVS Pharmacy store can be seen from the Manhattan borough of completely new York City, completely new York, U.S., November 30, 2017.

Shannon Stapleton | Reuters

A CVS Pharmacy store can be seen from the Manhattan borough of completely new York City, completely new York, U.S., November 30, 2017.

CVS Health posted a better-than-expected first-quarter profit on Wednesday, helped by higher sales of prescription drugs at its stores, sending its shares up 4.3 percent in trading before the bell.

The company also said of which of which was sticking with its expectations of closing the $69 billion deal to buy Aetna from the second half of the year.

CVS’s total same store sales increased 5.8 percent, while pharmacy same store sales surged 7.3 percent on higher prices of branded drugs in addition to also partnerships with different pharmacy benefits managers.

Overall revenue by the company’s retail business increased 5.6 percent to about $20.4 billion.

However, the company’s retail business accounts for a shrinking share of its total sales, with most revenue at This kind of point coming by its pharmacy benefits manager, which serves as a middleman between insurance companies, pharmacies in addition to also drugmakers.

Net revenue by its pharmacy benefit management business rose 3.2 percent to $32.22 billion, driven by higher claims on costlier drugs among different things.

Net income attributable to the company rose to $998 million, or 98 cents per share, from the reported quarter ended March 31 by $952 million, or 92 cents per share, a year earlier.

Net revenue rose 2.6 percent to $45.69 billion.

Excluding items, of which earned $1.48 per share, beating analysts’ estimates of $1.41, according to Thomson Reuters I/B/E/S.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

five × four =