“Very-recent pharmacy-network changes in the marketplace are expected to cause some retail prescriptions to begin migrating out of our pharmacies this quarter.”
Editor’s Note: We have found PBM pricing at CVS to be some of the highest, along with Wallgreen’s pricing. Some of our clients have excluded both pharmacy chains from their network and have achieved plan cost reductions.
CVS Warns of Coming Retail-Prescription Tumult — Market Talk
BY Dow Jones & Company, Inc.
— 7:36 AM ET 11/08/2016
7:36 ET – Downbeat 4Q and 2017 earnings guidance has CVS tumbling premarket as the drugstore operator and pharmacy- benefits manager as CEO Larry Merlo says, “Very-recent pharmacy-network changes in the marketplace are expected to cause some retail prescriptions to begin migrating out of our pharmacies this quarter.” CVS next year expects the “loss of more than 40 million retail prescriptions related to marketplace changes, including new retail-pharmacy networks that are excluding CVS.” Merlo goes on to say the company is “experiencing slowing prescription growth” overall and “a soft seasonal business.” Shares fall 14% to $71.89, which would be the stock’s worst day in 7 years if maintained. CVS had already fallen 15% this year. Walgreens (WBA) is down 4.3% premarket. (kevin.kingsbury@wsj.com; @kevinkingsbury)
