As consumers stocked up on merchandise amid the coronavirus pandemic, CVS Health Corporation reported that front store revenues rose 8.5 percent in the three months concluding March 31 compared to the year before. The health retailer reported that the growth was mainly because of the strength in general merchandise and consumer health sales largely driven by COVID-19 related purchases, the impact of the additional day in 2020 because of the leap year and the expansion of the CarePass® program, according to an announcement.
Prescriptions filled increased 8.2 percent on a 30-day equivalent basis for the three months concluded on March 31 compared to the year before, with the inclusion of a 9.8 percent rise in same store prescription volume. The company said the increase was mainly fueled by the higher use of 90-day prescriptions and early refills of maintenance medications as shoppers got ready for the coronavirus, the continued adoption of patient care programs, and the impact of one more day this year because of the leap year.
CVS Health President and CEO Larry J. Merlo said in the announcement, “We have a presence in communities across the country and interact with one in three Americans every year. We have a leading consumer brand with a diversified portfolio of essential health care businesses.”
Overall pharmacy claims processed rose 12.4 percent on a 30-day equivalent basis for the three months concluded on March 31 compared to the prior year, mainly powered by higher claims with the firm’s IngenioRx agreement that started in Q2 2019 as well as the higher use of 90-day prescriptions and early refills of maintenance medications as shoppers got ready for the coronavirus pandemic.
CVS Health reported total revenues of $66.8 million and adjusted earnings per share (EPS) of $1.91 for the first quarter compared to analyst estimates of $64 billion and $1.63 per share. Shares in the company were higher by approximately 2.65 percent just after 10:30 a.m. Eastern Time on Wednesday (May 6).
