CVS Caremark (CVS), one of the largest domestic integrated pharmacy service providers, is going to introduce a health screening program named “To Your Health” for the first time in Los Angeles, California.
This free health screening program, along with 240 events, is scheduled for launch on March 26, 2011 and is expected to continue through the end of 2011. By launching this program, CVS is trying to take a step towards creating an awareness of the risks of chronic diseases and proper guidelines on treatment plans.
Weight gain and obesity have become the major causes of many chronic diseases at present. With the ‘To Your Health’ program, CVS is trying to target the masses facing such root problems. It has incorporated Dr. Ian Smith’s “Makeover Mile” walk followed by free screening for adults on chronic diseases like diabetes, blood pressure, cholesterol, bone density (osteoporosis) and vision. Additionally, CVS Pharmacists will provide proper guidance and treatment plans.
The severity of these chronic diseases are on the rise these days. Therefore, the market has a huge potential. As a result, meaningful strategic initiatives can boost the sales of CVS’ pharmacy services business with which the company has been struggling over the past few quarters.
During the fourth quarter 2011, revenues decreased 4.1% year over year to $24.8 billion, driven by a 9.7% decline in the Pharmacy Services segment. However the Retail Pharmacy increased 3.1% during the quarter.
However the company is confident of achieving operating profit growth in 2012 based on its strategic initiatives, marketing plans and huge potential of generic drugs that are likely to go off patent in 2012. Moreover it should get benefits from its streamlining initiatives. Furthermore, the decision to acquire Universal American’s Part D business should generate further growth in the pharmacy segment.
We are currently ‘Neutral’ on the stock.
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