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US drugstore giant CVS to stop selling cigarettes

The second largest US drugstore chain, CVS, announced Wednesday it will soon quit selling cigarettes, a decision President Barack Obama hailed as a "powerful example." CVS said its 7,600 stores across the country will cease tobacco sales by October 1, despite the projected $2 billion revenue loss the move will entail each year. Larry Merlo, president and CEO of CVS Caremark, described the decision as "the right thing for us to do for our customers and our company to help people on their path to better health."

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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