CVS profit beats estimates as high drug prices boost pharmacy business

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CVS posted a quarterly profit that beat Wall Street's estimates, as its pharmacy business gained from higher prescription drug prices

) reported a higher-than-expected fourth-quarter profit on Wednesday as its stores sold more medicines and the pharmacy benefit management business benefited from higher U.S. prescription drug prices.

The company played down the role of rebate guarantees on a conference call with analysts, and said it expects the issue to be immaterial to earnings as it heads into 2021. The company forecast total adjusted 2020 profit of $7.04 to $7.17 per share. The analysts’ average estimate is $7.15 per share, according to Refinitiv data.

CVS plans to offer less expensive expanded health services such as blood pressure screening and diabetes monitoring in 1,500 stores by 2021. Executives said they could eventually expand the format dubbed HealthHubs to all of its stores.

 

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What is good for the stock market is bad for working people.

$300 EpiPen is just criminal.

And overloading their pharmacists with short staffing and incentive based tasks that causes errors.

Well, as long as CVS is happy.

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