CVS reports strong Q3 results, but says pandemic has hurt prescription volume

CVS saw a 3.5 percent increase in total revenue over last year, but the COVID-19 pandemic hurt its pharmacy services segment, according to the company’s third-quarter results released Nov. 6. 

Seven things to know about the company’s financial results: 

  1. CVS’ total revenues were $67.1 billion, up 3.5 percent from the year prior.
  2. The company’s operating income increased 11 percent, though net income decreased 20.3 percent compared to last year with CVS paying  $766 million in debt.
  3. For its pharmacy services segment, total revenue decreased 0.9 percent, primarily due to client losses and price compression.
  4. The operating income for the pharmacy services segment increased by 16.7 percent, primarily driven by the growth in its specialty pharmacy.
  5. CVS’ retail segment’s revenue increased 5.9 percent, primarily driven by increased prescription volume and increased diagnostic testing. Those gains were partially offset by continued reimbursement pressure and recent introductions of generic drugs, however.
  6. The number of prescriptions filled grew 4.6 percent, but CVS said prescriptions filled last quarter were adversely affected by the pandemic, which resulted in fewer new therapy prescriptions. The reduced number of new therapy prescriptions were partially offset by greater use of 90-day prescriptions and more immunizations.
  7. CVS said it has doubled its number of testing sites to more than 4,000 nationwide. It said it has administered more than 6 million COVID-19 tests since March and hired 76,000 new employees in response to the pandemic. 

Find CVS’ full Q3 results here

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