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CVS Health Corp. leaders said last week that they still expect the Rhode Island-based pharmacy giant to complete the acquisition this year to build its health services platform and further grow its retail business.
President and CEO Karen Lynch and her team have been eyeing a large primary care platform for several quarters and are also looking to add a technology platform and home health providers to their portfolio. But their desire to grow is hindered – Guertin mentioned three months ago Price as a big obstacle – Even if the company is able to sell additional services to customers/patients who come to the store for a covid-19 test.
In an Aug. 3 conference call following CVS’s second-quarter earnings report, Lynch said her team hoped to reach an agreement in the coming months.
“You don’t have to design exactly how and what these deals will be announced,” Lynch said. We are very encouraged and confident that we will take the next step in this journey later this year.
Guertin added that CVS’ desire to add more health services to its retail, pharmacy and health insurance businesses is something the market hasn’t seen much of in the past, “so there’s not a one-and-done asset there.” But CVS Foundation and the opportunity to convert store traffic to patient services are growing: Minute Clinic websites handled more than 2.8 million patient visits in the first half, up 12 percent from 2021.
Lynch and Guertin’s comments speak to a healthcare M&A market that is gaining new footing after a spring in which financial markets strengthened and the financial impact of the COVID pandemic on providers became more apparent. According to Burke Lindsay of Raymond James Financial Inc Healthcare innovation In June,Buyer expectations are adjusted very quickly” than sellers in high-risk areas, throwing sand in the deal gear.
In the three months ended June 30, CVS made A net profit of about 3.0 billion dollarsIn the year 6 percent higher than in 2021. Revenues rose 11 percent from last year to $80.6 billion and adjusted operating income came in at $4.8 billion, down slightly from the same period a year ago. Those numbers topped company forecasts and led executives to raise their full-year guidance.
Shares of CVS (ticker: CVS) ended around $104 on August 10, up slightly on the day. In the last six months, they are basically flat.
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