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CVS buyout of Longs Drug Stores closes

By Associated Press

POSTED: 01:44 p.m. HST, Oct 30, 2008

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WOONSOCKET, R.I. >> Drugstore operator and pharmacy benefits manager CVS Caremark Corp., whose $2.7 billion buyout of California-based Longs Drug Stores Corp. closed yesterday, said its profit grew 7 percent in the third quarter as retail pharmacy revenue improved.


CVS said today it earned $732.5 million, or 50 cents a share, up from $686.1 million, or 45 cents a share a year ago.


Revenue grew 2 percent, to $20.86 billion from $20.5 billion, with retail pharmacy revenue up 5 percent to $11.54 billion.


CVS reported a profit of 60 cents a share excluding one-time items, such as amortization costs. Analysts expected 60 cents a share and greater revenue of $21.06 billion, according to Thomson Reuters.


Better pharmacy sales and front-end revenue lifted CVS’s retail pharmacy profit, and CVS said sales at older stores grew 3.7 percent.


Front-store revenue grew 5.7 percent, pharmacy revenue grew 5.1 percent.
Growth was slower than a year ago, however.


Pharmacy services revenue fell about 1 percent to $10.56 billion. CVS lost a mail services contract with the Federal Employees Health Benefit Plan at the end of 2007, and as a result, mail service revenue fell 13 percent to $3.62 billion.


That canceled out an increase in revenue from the retail network business.
CVS’s generic drug dispensing rate increased to 68 percent from 63.7 percent a year ago.

WOONSOCKET, R.I. >> Drugstore operator and pharmacy benefits manager CVS Caremark Corp., whose $2.7 billion buyout of California-based Longs Drug Stores Corp. closed yesterday, said its profit grew 7 percent in the third quarter as retail pharmacy revenue improved.



CVS said today it earned $732.5 million, or 50 cents a share, up from $686.1 million, or 45 cents a share a year ago.


Revenue grew 2 percent, to $20.86 billion from $20.5 billion, with retail pharmacy revenue up 5 percent to $11.54 billion.


CVS reported a profit of 60 cents a share excluding one-time items, such as amortization costs. Analysts expected 60 cents a share and greater revenue of $21.06 billion, according to Thomson Reuters.


Better pharmacy sales and front-end revenue lifted CVS’s retail pharmacy profit, and CVS said sales at older stores grew 3.7 percent.


Front-store revenue grew 5.7 percent, pharmacy revenue grew 5.1 percent.
Growth was slower than a year ago, however.


Pharmacy services revenue fell about 1 percent to $10.56 billion. CVS lost a mail services contract with the Federal Employees Health Benefit Plan at the end of 2007, and as a result, mail service revenue fell 13 percent to $3.62 billion.


That canceled out an increase in revenue from the retail network business.
CVS’s generic drug dispensing rate increased to 68 percent from 63.7 percent a year ago.

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