CVS gains with Aetna contract
CVS Caremark Corp. reported weaker quarterly earnings and lowered its profit forecast, but shares rose as investors approved of a large pharmacy benefit management services contract struck with Aetna.
CVS Caremark will administer Aetna’s retail pharmacy store network and manage customer service. It will also handle prescription drug purchasing, manage inventories and fill prescriptions for Aetna’s mail order and specialty pharmacy operations. The contract will ramp up over several years and bring in an estimated $8.2 billion in revenue next year. CEO Tom Ryan said the 12-year contract is the largest and longest contract in the industry.