Morning Briefing
Summaries of health policy coverage from major news organizations
CVS To Buy Target's Drug Store Business For $1.9 Billion
The Associated Press: Target Selling Pharmacy, Clinic Businesses To CVS Health
Target will sell its pharmacy and clinic businesses to the drugstore chain CVS Health for about $1.9 billion in a deal that combines the resources of two retailers seeking to polish their health care reputations. (6/15)
The New York Times: CVS To Buy 1,600 Drugstores From Target For $1.9 Billion
The voracious CVS Health is already a dominant player in nearly every corner of the health care world — it is the nation’s largest dispenser of prescription drugs, the biggest operator of health care clinics and the second-largest pharmacy-benefits manager. And with the news Monday that it had agreed to buy Target’s pharmacy and clinic businesses in a deal worth about $1.9 billion, it demonstrated that its appetite shows no signs of abating. (Thomas, Bray and Tabuchi, 6/15)
USA Today: CVS Buys Target Pharm Biz For $1.9B
The deal comes a little less than a month after CVS entered into an agreement to acquire Omnicare, for about $12.7 billion, in a move to expand its presence in the senior care market. More than 1,660 Target pharmacies in 47 states will be rebranded as CVS/pharmacy. Target's clinics, nearly 80 in total, will be renamed MinuteClinic. (Bomey, 6/15)
The Washington Post: CVS To Acquire Target’s Pharmacy Business For $1.9 Billion
CVS executives said the deal would allow them to reach a broader base of customers. They will enter metropolitan areas where they don’t currently have a strong presence, such as Seattle, Portland and Denver, and perhaps capture a different kind of shopper: While CVS’s 7,800 drugstores are often a destination for a “fill-in trip,” in which you grab two or three items, Target’s massive merchandise assortment makes it a logical destination for a bigger shopping trip. (Halzack, 6/15)
Reuters: CVS Health To Buy Target's Pharmacy Business For $1.9B
For Target, the deal divests a business that was "modestly negative" in terms of profits. While Target will lose revenue, its sales, general and administrative costs will drop by $1 billion. Target Chief Executive Brian Cornell said the move fits with the company's focus on a handful of categories where it believes it can be most competitive including apparel, items for children and health and wellness-related goods. Target will continue to handle the sale of over-the-counter drugs. (Ramakrishan and Layne, 6/15)
The Washington Post: CVS’s Purchase Of Target’s Pharmacy Business: The Good And Bad For Consumers
The announcement Monday by CVS Health Corp. that it would purchase Target's pharmacies and clinics for $1.9 billion represents a major acceleration in the retail clinic revolution. Since the concept of having a small, walk-in doctor's office inside a store made its debut in the American market in 2000, millions of consumers have taken advantage of the convenience of being able to get a flu shot, refills for prescriptions, and treatment for things like ankle sprains or a cough at the same time they are shopping. (Cha, 6/15)
