Covid Vaccines And Testing Boost CVS Health Profits

CVS reported greater than $1 billion in quarterly income thanks partly to a rush of shoppers being vaccinated in opposition to Covid-19 or examined for the virus because the Omicron variant surged throughout the U.S.

CVS on Wednesday said it administered greater than 20 million vaccinations and eight million checks within the fourth quarter ended Dec. 31, 2021. That was an enormous leap from the greater than 11 million vaccinations CVS administered in the third quarter. In all of final yr, CVS administered greater than 59 million Covid-19 vaccinations and greater than 32 million checks.  

The Covid-19 pandemic has been turbulent for drugstore chains like CVS Well being and rival Walgreens as they battled authorities shutdowns early on and clients who didn’t wish to depart their properties.

In late 2021 and early 2022, nonetheless, pharmacy chains are on a roll with clients in search of checks, vaccines and different well being gadgets in drugstores. CVS Wednesday reported web earnings of $1.3 billion or 99 cents a share in comparison with $973 million or 74 cents within the year-ago quarter. CVS gross sales rose 10% almost 8% to $76.7 billion within the firm’s first quarter.

“We’re coming into 2022 with highly effective momentum,” CVS Well being president and chief government Karen Lynch mentioned on a name Wednesday morning to debate earnings.

CVS, which owns the well being insurer Aetna, mentioned its well being plan product strains additionally carried out properly within the quarter as medical membership rose by 151,000 to 23.8 million as of Dec. 31, 2021. Revenues within the well being advantages enterprise had been up 8% to $20.7 billion.

In the meantime, pharmacy advantages companies, which incorporates one of many nation’s largest pharmacy profit administration (PBM) firms, additionally carried out properly with income up greater than 8% to $39.3 billion.