Helena Foulkes to investors: CVS Health remains 'a category of one'
WOONSOCKET, R.I. — Fresh from two major acquisition announcements — Target’s pharmacy business and Omnicare — CVS Health remains "a category of one” and continues to look ahead to its next innovative move, Helena Foulkes, EVP of CVS Health and president of CVS/pharmacy, told investors at the Jefferies 2015 Global Consumer Conference Tuesday morning.
“We foresaw the coming changes in healthcare and over the past several years we have built a one-of-a-kind company with unmatched, integrated assets. Our model has continued to fuel our growth by enabling us to bring differentiated solutions that our competitors simply cannot match,” Foulkes said during the presentation, which was webcast. “So, how can I summarize competitive edge? We are the only company with the ability impact consumer, payors and providers with innovative, channel-agnostic solutions.”
The company's retail pharmacy business continues its history of strong performance as the company is outpacing the market, Foulkes told investors. That growth is being driven not only by CVS Caremark, but also by share gains with other payors.
Commenting on the acquisition of Target’s pharmacy business, Foulkes said, “This strategic relationship brings together two leading retailers who complement in strength, brand and culture to enhance the experience for Target guests, while expanding CVS Health’s presence in new markets. … This transaction also enables us to reach more patients, adding a new retail channel for our offering such as Maintenance Choice, Pharmacy Advisor and Specialty Connect.”
The deal also includes the rebranding of Target’s nearly 80 medical clinic with CVS Health’s MinuteClinic banner, and the building of another 20 clinics in stores, which will become part of CVS Health’s larger growth goal of operating 1,500 clinics by 2017.
CVS Health currently operates nearly 1,000 clinics in 31 states and the District of Columbia. Over the past two years, the company has opened more than 340 clinics while entering 20 new markets.
As previously reported, CVS Health also reached an agreement to acquire Omnicare, a provider of pharmacy services to long-term care facilities. The move will significantly expand CVS Health’s its ability to dispense prescriptions in assisted living and long-term care facilities.
“The acquisition of Omnicare provides a new pharmacy dispensing channel for CVS Health, expanding our customer reach to a broader population of chronic care patients and seniors at an important time as the population ages,” Foulkes told investors.
Omnicare also has a specialty pharmacy business — the eighth largest in the United States — so the deal no doubt complements CVS Health’s existing specialty business and further expands CVS Health’s presence in the space.
During her presentation, Foulkes also reiterated the five strategic themes previously outlined by CVS Health to further grow the front-store business:
• Better health made easy
• Elevate beauty
• Customer-driven personalization
• MyCVS store
• Digital innovation
In wrapping up her comments, Foulkes left investors with four key takeaways:
• CVS Heath foresaw the coming changes of the healthcare landscape and built a suite of assets to capitalize on the opportunities;
• CVS Health remains "a category of one.” “It is still CVS Health with an integrated pharmacy model and one that is resonating with clients and customers and driving success in the market. Our unique suite of assets remain unmatched,” Foulkes said;
• Change is not over. “We are looking ahead and remain focused on our next innovative move to further differentiate CVS Health,” Foulkes told investors; and
• CVS Health remains focused on achieving sustainable, long-term growth and returning value to its shareholders.