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CVS kicks the tobacco habit - industry waits to see if it's a retail rebel, or the future

It has long been gospel among retailers that tobacco pulls so much business into stores, with smokers also picking up water, gum or a bag of chips, that dumping it would be a sales killer. However, with pressure from anti-smoking forces growing, tobacco use waning and now a national drugstore chain jettisoning cigarettes for good, is this calculus starting to crack?

CVS to pay $20 million to settle SEC fraud charges

By Jonathan Stempel (Reuters) - CVS Caremark Corp, which operates the second-largest U.S. drugstore chain, will pay $20 million to settle U.S. Securities and Exchange Commission charges that it defrauded investors in 2009 by concealing significant financial setbacks and accounting improperly for an acquisition.

CVS Caremark's 4th-quarter profit jumps more than 12 per cent, 1st-quarter forecast rises

CVS Caremark shares outpaced the broader market Tuesday after the drugstore chain raised its earnings forecast for the start of 2014 and reassured investors that its business can absorb the financial hit coming from a decision to stop selling tobacco products. The Woonsocket, R.I., company also reported fourth-quarter earnings that climbed more than 12 per cent and edged past Wall Street expectations. CVS Caremark Corp. gained national attention last week after it promised to phase out sales of tobacco products from its more than 7,600 drugstores nationwide.

CVS fourth-quarter sales rise on high prescription volume

(Reuters) - CVS Caremark Corp posted higher quarterly profit on Tuesday as it processed more prescriptions and benefited from the introduction of new generic drugs, helping it offset a drop in store visits by customers. CVS, which operates the No. 2 U.S. drugstore chain and a major pharmacy benefits management business, raised its first-quarter profit forecast by 7 cents per share to a range of $1.03 to $1.06. It stuck to the 2014 forecast from December and still expects adjusted profit of $4.36 to $4.50 per share this year.

CVS becomes first big U.S. drugstore chain to drop tobacco

By Phil Wahba and Julie Steenhuysen (Reuters) - CVS Caremark Corp will stop selling tobacco products at its 7,600 stores by October 1, the company said on Wednesday, making it the first national drugstore chain in the United States to take cigarettes off the shelves.

U.S. lifts sanction on a CVS Caremark Medicare drug plan

(Reuters) - CVS Caremark Corp said on Friday that the Centers for Medicare and Medicaid Services lifted sanctions it had imposed earlier this year on a CVS Medicare drug plan aimed at seniors, allowing the company to resume enrolling members in 2014. As of January 1, CVS Caremark, a pharmacy benefits manager and drugstore operator, will be able to resume marketing of its SilverScript Medicare Part D plan.

CVS, Cardinal Health form U.S. generic drug venture

(Reuters) - Pharmacy chain CVS Caremark Corp and pharmaceutical distributor Cardinal Health Inc on Tuesday announced a 10-year agreement to form the largest generic drug sourcing operation in the United States, the world's biggest generic drug market. The 50-50 joint venture will be operational as soon as July 1, 2014. Under the agreement, Cardinal will pay CVS $25 million on a quarterly basis for the duration of the contract, with an estimated after-tax value to CVS of $435 million.

Drugstore operator CVS Caremark's 2nd-Qtr profit climbs 16 per cent, guidance narrows

CVS Caremark Corp.'s second-quarter earnings jumped 16 per cent, as the drug store operator and pharmacy benefits manager continued to reap bottom-line gains from generic drugs. But the Woonsocket, R.I., company's shares slid Tuesday afternoon after it also dropped the top end of its 2013 earnings forecast a penny below the Wall Street consensus due to a delay in share buybacks, which can boost earnings per share by lowering the share count.

CVS Medicare issues taking longer than planned, profit up

By Jessica Wohl (Reuters) - CVS Caremark Corp <CVS.N> expects to lose about 10 percent of patients enrolled in one of its Medicare prescription drug plans because of a government marketing ban but does not expect the decrease to have a significant impact on its long-term results. In January, the Centers for Medicare and Medicaid Services said CVS could not market to or enroll new members in its SilverScript drug plan for seniors because of service issues.

CVS Caremark's 1st quarter profit jumps 23 per cent, helped by impact from generic drugs

CVS Caremark's first-quarter net income jumped 23 per cent to top Wall Street's expectations, as generic drugs continued to improve profitability even though those prescriptions hurt revenue. Generic drugs, which are cheaper, copycat versions of brand-name medicines, help a drugstore's bottom line because they provide a wider margin between the cost for the pharmacy to purchase the drugs and the reimbursement received. But they hurt drugstore revenue because generics cost less than brand-name drugs.
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