Morning Briefing
Summaries of health policy coverage from major news organizations
CVS Posts Second Straight Quarter Of Unexpectedly Strong Financial Results
Reuters: CVS Health Raises 2019 Profit Forecast After Beating Profit Estimates
CVS Health Corp raised its full-year profit forecast and reported higher-than-expected second-quarter results on Wednesday, as increased U.S. prescription drug prices fueled rebates to its pharmacy benefits business. CVS shares were up 6.6% at $57.65, while the broader market was down about 0.5%. (Mishra and Mathias, 8/7)
The Wall Street Journal: CVS Boosts Profit Outlook As Aetna Deal Starts To Pay Off
The tone Wednesday was a change from early this year, when CVS gave a downbeat earnings projection for 2019 that pushed its shares down sharply and led investors to press for more detail about the company’s growth plans. CVS and rival Walgreens Boots Alliance Inc. are under pressure to find new ways to counter slowing revenue from prescription drugs, which drive the bulk of the pharmacy chains’ sales. They also face government scrutiny of the traditional pharmacy-benefits business model, and particularly of rebates paid by drugmakers. (Terlep and Maidenberg, 8/7)
The Associated Press: Aetna Deal Begins To Pay Off For CVS
CVS Health swung back to a profit in the second quarter, thanks to an influx of health insurance revenue, and the company raised its 2019 forecast beyond Wall Street expectations. Shares of the drugstore chain and pharmacy benefit manager outpaced the broader market in Wednesday trading after the company detailed its better-than-expected quarterly performance. (Murphy, 8/7)
