CVS Health reported third quarter results for the three months ended September 30, 2018.
- Net revenues increased 2.4% to $47.3 billion, up from $46.2 billion in Q3 2017.
- Pharmacy Services Segment revenues increased 2.6% to $33.8 billion. This increase was primarily driven by growth in pharmacy network and mail choice claim volume as well as brand inflation, partially offset by continued price compression.
- Pharmacy network claims processed increased by 5.4% on a 30-day equivalent basis, to 394.5 million, compared to 374.2 million in the prior year.
- Mail choice claims processed increased by 7.4% to 71.8 million, compared to 66.9 million in the prior year. The increase in mail claim volume was driven by continued adoption of CVS Health’s Maintenance Choice offerings and an increase in specialty pharmacy claims.
- Retail/LTC Segment revenues increased 6.4% to $20.9 billion, driven by a 9.2% increase in same-store prescription volume due to partnerships with PBMs and health plans, further inclusion in Medicare Part D, and adoption of CVS Health’s Patient Care Programs.
- The increase was partially offset by continued reimbursement pressures.
- Same-store sales increased 6.7%, and pharmacy same-store sales increased 8.7% in Q3 2018, driven mostly by an increase in same-store prescription volumes.
- Front store same store sales increased 0.8%.
- The increase was driven by strength health care and beauty care categories.
- Consolidated operating profit for Q3 2018 decreased 5.8% to $2.4 billion.
Net Income (Loss) and Earnings (Loss) Per Share
- Net Income increased 8.2% to $1.4 billion.
- GAAP EPS for Q3 2018 was $1.36, compared to $1.26 in the prior year.
- Adjusted EPS was $1.73, vs. $1.50 in Q3 2017.
The previously announced acquisition of Aetna by CVS Health will proceed, provided Aetna agree to sell its individual standalone Medicare Part D prescription drug plans. As part of the agreement, Aetna entered into an asset purchase agreement with a subsidiary of WellCare Health Plans, Inc. for the divestiture of Aetna’s standalone Medicare Part D prescription drug plans, which consists of approximately 2.2 million members.
Source: CVS Press Release