About Advance Paradigm Mail Services, Inc
CVS Health Corp. is a leading pharmacy benefits manager with nearly 90 million plan members as well as the nation's largest drugstore chain (topping Walgreens). It runs more than 9,700 retail and specialty drugstores under the CVS, Navarro, and Longs Drug banners. In addition to its standalone pharmacy operations, the company operates CVS locations inside Target stores, and runs a prescription management company, Caremark Pharmacy Services. The company also offers walk-in health services through its retail network of MinuteClinics that are located in around 1,000 CVS stores. In late 2018 CVS acquired health insurer Aetna in a $70 billion megadeal.
CVS Health operates through two main segments: Pharmacy Services and Retail/LTC (long-term care).
Pharmacy Services, which accounts for around 60% of sales, is the company's pharmacy benefits management (PBM) division. It dispenses drugs through nearly 25 retail specialty pharmacy stores, more than 13 specialty mail order pharmacies, and four mail order dispensing pharmacies. It also operates around 85 medical branches, most of which are ambulatory infusion sites, but also include specialist infusion and enteral service facilities. Its other offerings include plan design and administration, formulary management, discounted drug purchase arrangements, and a slew of other services. All told, the division fills more than 1.2 billion prescriptions per year.
CVS's Retail/LTC segment (40% of sales) operates around 9,700 pharmacies (including 1,675 pharmacies located in Target stores), as well as 1,140 MinuteClinic locations, long-term care pharmacy operations, and online operations (CVS.com, Onofre.com.brTM, and Navarro.com). The pharmacy accounts for more than two-thirds of sales in this segment, while "front store" retail merchandise accounts for the rest. CVS' MinuteClinics, which are primarily located in CVS stores, are staffed by nurse practitioners and physician assistants who treat minor conditions, perform health screenings, and deliver vaccinations; some locations also treat chronic conditions.
CVS retail locations, drugstores, and clinics are located in 50 US states, the District of Columbia, Brazil, and Puerto Rico. The company also operates pharmacies under the Longs Drugs banner in California, Hawaii, Nevada, and Arizona. MinuteClinics are located in around 1,000 store locations across 31 states and Washington, DC. The company is present in all the top 100 drugstore markets in the US.
Sales and Marketing
Pharmacy Services' clients include employers, insurance companies, unions, and other health care plan sponsors. The segment makes direct sales of its prescription drugs through its mail service dispensing pharmacies. It also sells indirectly through its retail pharmacy network.
CVS Health's annual revenues and profits have risen sharply since 2011, surpassing that of competitor Walgreens, thanks to aggressive store openings/acquisitions and expansion into new business lines.
In fiscal 2016 revenue increased a further 16% to $177.5 billion on the back of the acquisition of Omnicare in mid-2015 and the pharmacies and clinics of Target at the end of 2015. It also recorded net new business in the Pharmacy Services Segment.
Net income grew 2% to $5.3 billion as acquisition-related costs put a dent in profits relative to the strident revenue growth. Cash from operations grew 20% to $10.1 billion due to revenue growth and timing of payments for its Medicare Part D operations.
In December 2017, CVS struck a deal to acquire health insurer Aetna in what might be a move to fend off potential competitor Amazon. The deal will allow CVS to further expand the health care services it offers, as well as providing it with more leverage in negotiations for drug prices.
The planned acquisition of Aetna continues CVS' efforts to expand beyond retail pharmacy into health care provision. Its mid-2015 acquisition of Omnicare moved it into nursing home pharmacy, while its acquisition of Coram the previous year brought the company into the specialty pharmainfusion services business for the first time. Its infusion business offers ambulatory infusion suites, which offer patients an alternative to a hospital environment with IV infusions and other infusion therapy services in a safe, monitored area.
The company's Retail Pharmacy Store Development plan -- focused on entering new markets, adding stores in existing markets, and relocating stores to more convenient sites -- has been a key growth driver. The acquisition of Target's pharmacies in late 2015 carried CVS past Walgreens in terms of annual revenue.
In addition to opening new stores, CVS has made efforts to increase sales at existing ones. Prescription drugs account for more than two-thirds of its sales, and the retailer is attempting to grow revenues from over-the-counter medications and general merchandise through its growing private-label product offering. CVS and
Mergers and Acquisitions
At the end of 2018 CVS acquired healthcare insurer Aetna for $70 billion. The deal created a new giant in the prescription drugs industry and is seen as a defensive move with players such as Amazon eyeing a move into the prescription drug space.
545 E JOHN CARPENTER FWY STE 1570
Irving, TX 75062-3931
Phone: 1 (972) 830-6199
Employer Type: Privately Owned
Employees (This Location): 300
Employees (All Locations): 300