CVS is about lose more than 40 million prescriptions
Drugstore chain and pharmacy benefits manager CVS Health Corp cut its profit forecast for this year and projected weak growth for 2017, saying it expected to lose more than 40 million retail prescriptions to other pharmacy chains, sending its shares down as much as 17 percent to a more than two-year low.
Rising generic drug prices have squeezed retail pharmacies as well as pharmacy benefits manager (PBM) – which help private sector medical insurers negotiate better prices from drugmakers – because insurers are raising reimbursement rates slowly. CVS is particularly vulnerable to rising drug prices because it has both retail and PBM businesses. Furthermore, recent moves by health insurers seeking to cut costs by limiting pharmacy choices would slam CVS Health. Those insurers are bringing their business to arch rival Walgreens, costing CVS a big chunk of its drug-filling business.