Article

Top 100: 52. CVS/Caremark

April 24, 2011

CVS Caremark Corp was forced to lower the high end of its expected 2010 earnings range as a result of increased spending to streamline its ailing pharmacy benefits management business. CVS’s 2007 acquisition of the Caremark PBM brand has been criticized by investors who say the combination failed to provide the benefits initially expected. Caremark administers prescription drug benefits for employers and health plans and also operates mail-order pharmacies. CVS claims its retail sales were helped by PBM customers who make additional purchases when picking up medications. The PBM’s Maintenance Choice plan encourages customers to pick up their long-term medications at CVS stores instead of ordering them by mail.

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