CVS gains with Aetna con­tract

Austin American-Statesman - - BUSINESS - Com­piled from wire re­ports

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.

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