CVS Health Corp.’s stock CVS, -6.17% fell more than 4% premarket Wednesday, after the drug-store chain and health-services company posted stronger-than-expected third-quarter earnings but cut profit guidance for the full year and sounded downbeat on its 2024 outlook.
While results beat expectations, CVS said some headwinds in key business segments may continue into next year. In the company’s healthcare benefits unit, which offers Medicare Advantage and other health insurance plans, adjusted operating income dropped 6.4% from the year earlier, as increased utilization in Medicare Advantage plans weighed on results, CVS said.
Addressing the popularity and cost of GLP-1 drugs for weight loss, CVS president and CEO Karen Lynch said on the call Wednesday, “it could cost the U.S. $1 trillion if every American that is considered obese, and that’s about 70 million Americans, were prescribed” the drugs. “It is imperative for us as a PBM to really reduce the overall cost of those drugs, and we’re working very closely with our customers to do that,” Lynch said.
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