WOONSOCKET, R.I. — CVS Health said its sales will accelerate in the year ahead as it advances its reinvention as a multifaceted health care business.
The announcement came during CVS’ investor day event, which presented company leaders with an opportunity to articulate how investment in high-growth areas of the business and the introduction of new products and services should enhance shareholder value.
“Now is the time to undertake our next major evolution and capitalize on our role as the leading health solutions company in America,” said Karen Lynch, president and chief executive officer of CVS Health. “By leaning into our high-growth foundational businesses and expanding our reach in areas like health services and primary care, we have an opportunity to shift care to be more centered around the consumer while capturing a meaningfully greater portion of health care spend. Ultimately, this plan is only possible with our unique combination of assets which will allow us to lower costs, increase access to quality care, and improve health outcomes for consumers, patients and members.”
Lynch told investors that CVS will build on momentum gained during the pandemic, as more people used telehealth and visited drug stores for COVID-19 tests and vaccinations. Meanwhile, CVS is integrating its drug stores, its health insurer Aetna and its pharmacy benefit manager Caremark to drive more business.
Recent changes are meant to go well beyond products on the shelves, and to help the company shift the mindset of shoppers who enter a CVS store with a specific task in mind. Company officials expect that the experiences customers encounter at in-store HealthHUBs, where they can engage with health care professionals and learn about new products, will help them see CVS stores as valued partners in their health and wellness journeys.
Officials at the investor day event touted a “digital-first, technology-forward” approach that will expand the company’s reach and engagement with its more than 35 million online members, launching new offerings and streamlining business operations — leading to higher customer satisfaction levels and lower costs.
The strategy identifies enhanced omnichannel health services as vital in meeting the needs of consumers when and where they want them, including at home, virtually and in the community, the company said. This will include execution of the company’s omnichannel pharmacy strategy, with integration across all fulfillment channels to make pharmacy interactions as personalized and seamless as possible, CVS said.
The company will soon add new health products, subscription models and home health care options as it seeks to reduce costs and improve the health of people with chronic conditions.
CVS raised its full-year forecast, saying it now expects adjusted earnings of at least $8 per share, on revenue of at least $290 billion. For fiscal 2022, it projects adjusted per-share earnings of between $8.10 and $8.30 on revenues of between $304 billion and $309 billion.