Recent news magnifies ‘Power’
It’s been a busy month for news about CVS Caremark, as DSN raced to compile the special report on the company that appears in this issue. Each of the announcements only serves to amplify our “Power of One” theme.
Take its new joint venture with Cardinal Health, which will negotiate prices and source generic drugs for both companies.
Prior to the deal, CVS Caremark had already counted purchasing power among its key advantages. Now CVS Caremark picks up even more scale in the thick of the generic wave — $30 billion worth of brand-name drugs are expected to go generic in the next two years.
Then, there was CVS Caremark’s $2.1 billion acquisition of the Coram specialty infusion business. Specialty pharmacy already is a huge business for the company — estimated to reach more than $20 billion in 2013. With Coram, CVS Caremark is a major player in one of the fastest-growing segments of specialty pharmacy. The $11 billion home infusion services market is growing at about 10% a year.
And then you had the news about Helena Foulkes, who as of Jan. 1, officially takes the helm of the company’s retail business. While it may be slightly more difficult to quantify Foulkes’ value to the business, consider this: ExtraCare, Pharmacy Advisor and Maintenance Choice are three of the most innovative and game-changing programs the company has introduced in the past two decades; Foulkes has played a critical role in the development of each. She has made a career out of designing programs around the needs of the consumer, and DSN expects a lot of excitement to come out of the stores under her leadership.
Rob Eder is the editor in chief of The Drug Store News Group, publishers of Drug Store News and DSN Collaborative Care magazines. You can contact him at [email protected].