CVS Health Corporation is expanding the pharmacy side of its business to outside of the actual stores. The article describes how CVS is going to start next day delivery for prescriptions.
CVS is also looking into possibly buying a health insurance company, Aetna Inc. This is possibly a preemptive effort with the possibility of other companies getting into the Healthcare and pharmacy business.
With companies like Amazon possibly pushing into the healthcare and pharmacy business, CVS is worried about potential competition and its recent sales. CVS just stated their retail sales dipped 2 percent over the last quarter.
This information does not surprise me. It actually reminded me of an article I read on the NY Times, about how Amazon is certainly going to get into the pharmacy business.
The NY Times article did maintain that the actual threat Amazon poses now could be overblown. Amazon only applied for licenses in about twelve states and some licenses could be for other types of products.
An analyst for Jefferies, an investment banking firm, agreed with the above sentiment, expressing “It’s not evidence of a retail entry into the pharmacy business”.
This could mean that CVS is overacting to a possible market entry, by expanding its next day delivery and through its purchase of Aetna Inc.
(Association - Information)
CVS is also looking into possibly buying a health insurance company, Aetna Inc. This is possibly a preemptive effort with the possibility of other companies getting into the Healthcare and pharmacy business.
With companies like Amazon possibly pushing into the healthcare and pharmacy business, CVS is worried about potential competition and its recent sales. CVS just stated their retail sales dipped 2 percent over the last quarter.
This information does not surprise me. It actually reminded me of an article I read on the NY Times, about how Amazon is certainly going to get into the pharmacy business.
The NY Times article did maintain that the actual threat Amazon poses now could be overblown. Amazon only applied for licenses in about twelve states and some licenses could be for other types of products.
An analyst for Jefferies, an investment banking firm, agreed with the above sentiment, expressing “It’s not evidence of a retail entry into the pharmacy business”.
This could mean that CVS is overacting to a possible market entry, by expanding its next day delivery and through its purchase of Aetna Inc.
(Association - Information)
https://www.wsj.com/articles/cvss-revenue-rises-as-it-pursues-aetna-1509972920