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$CVS Management Update: Announced that Norman de Greve as, Chief Marketing Officer, effective July 15. De Greve will be accountable for marketing strategy across the enterprise. He has deep experience in cross-channel communications planning, brand campaigns, media, loyalty & analytics in financial services, health care, travel, retail etc.
For 4Q17, $CVS expects a negative free cash flow, as the company plans to settle the CMS payable associated with the 2016 plan year. Based on this the company maintains its FY17 guidance and continues to expect to produce free cash of between $6-6.4Bil
$CVS entered into a five-year agreement with $ANTM during 3Q17. Based on this, $CVS will offer its services to support $ANTM's new pharmacy benefit management company called IngenioRx, effective January 2020. The services include claims processing and prescription fulfillment through mail order and specialty pharmacies.
During 3Q17, $CVS experienced a negative effect of the three major hurricanes that hit Southern U.S. and Puerto Rico. The hurricanes along with retail weakness is what contributed to lower earnings during the quarter. The storm triggered a financial impact of approx. $55MM, which are costs primarily to cover insurance deductibles.
$CVS to bring next-day delivery from CVS Pharmacy locations beginning in early 2018. The company plans to offer free same-day delivery within hours in selected markets. $CVS continues to expand its partnership with Instacart to offer personal shopping at 2,600 CVS Pharmacy stores across the country.
$CVS, that proposed to buy $AET, reported a 17% drop in its 3Q17 profit, mainly due to reimbursement pressure and $187MM of losses on pension settlements. Net income during the quarter fell to $1.28Bil, or $1.26 per share, from $1.54Bil, or $1.44 per share during 3Q16. Adj. EPS was $1.50, down 9%. Revenues rose 4% YoY to $46.2Bil.
During 3Q17, $CVS's Pharmacy Services Segment reported 8.1% increase in its revenue to approx. $32.9Bil, driven by growth in the pharmacy network claim volume. Revenues in the Retail/LTC Segment decreased 2.7% to approx. $19.6Bil. The fall in revenue was mainly due to 3.2% decrease in same store sales.
CVS Pharmacy, the retail division of $CVS, said it is introducing automated retail vending machines stocked with convenient, on-the-go necessities including over-the-counter health products, "better-for-you" snacks and popular personal care products typically sold at CVS Pharmacy locations nationwide.
Higher pharmacy network claims boosted $CVS's PBM segment revenue to $32.3Bil for 2Q17, a 9.5% increase from 2Q16. The company, however, saw a decline of 2.2% in revenue from its Retail/Long-Term Care business due to decrease in same store sales.
During 2Q17, $CVS opened 27 new retail locations and closed three retail locations. The Company also relocated 10 retail locations. As of June 30, 2017, it operated 9,700 retail locations, including pharmacies in Target stores, in 49 states, the District of Columbia, Puerto Rico and Brazil.
Pharma company $CVS reported 19% growth in its 2Q17 profit, due to absence of $542MM loss on the early retirement of debt. Net earnings rose to $1.1Bil, or $1.07 per share, compared to $924MM, or $0.86 per share, during 2Q16. Net revenue rose 5% to $45.6Bil. Excluding items, $CVS earned $1.33 per share.