Inside This Issue - News
CVS Caremark aims to build on synergies
January 9th, 2012
NEW YORK – CVS Caremark Corp. is taking advantage of its combination of retailing, pharmacy benefits management and walk-in clinics to drive growth, president and chief executive officer Larry Merlo said at the company’s 2011 analyst day, here.
"Integration sweet spots" have positioned the company for success in the short and long term, he said.
The retail business met its objective for 2011, Merlo said, with solid top- and bottom-line growth and consistent share gains.
The PBM was finishing an “excellent selling season,” he added, with unique offerings gaining traction with existing and prospective clients.
The MinuteClinic business was on track to break even on an all-in basis in December, Merlo noted. The in-store clinics, numbering more than 600, provide an affordable alternative to the emergency room, he said.
Pointing out that more than three-fifths of maintenance prescriptions are refilled late, Merlo said CVS Caremark has a unique suite of offerings to boost compliance. The company feels “very passionate” about improving adherence, he said.
The new Pharmacy Advisor 3.0 initiative will be a comprehensive clinical program for multiple chronic conditions. An expansion of the original Pharmacy Advisor for diabetes, it will include face-to-face consultations for patients with hyperlipidemia, hypertension, coronary artery disease and congestive heart failure by midyear, and for other conditions by year end and still others by the end of 2013.
At the front end, the ExtraCare loyalty program has boosted traffic and basket size, said new CVS/pharmacy president Mark Cosby. Calling it "a true differentiator," he said, "we will take the sales-driving power of this tool to an even higher level in the coming years."
This year the chain will pilot a healthy rewards program, providing added incentives to boost loyalty. A successful test will lead to a national rollout in 2013, Cosby said.