WOONSOCKET – CVS Caremark Corp. said Thursday its profit increased to $867 million in the third quarter from $808 million in the same 2010 period.
Net revenue increased to a record $26.7 billion, the company said; third quarter 2010 revenue was $23.71 billion.
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In the pharmacy services segment, revenue surged 25.8 percent to $14 billion; CVS said the increase was driven by new activity from the acquisition of the Medicare prescription drug business of Universal American Corp. in the second quarter as well as a previously-announced contract with Aetna Inc.
On Nov. 1, CVS completed the sale of its subsidiary TheraCom LLC – part of the pharmacy services segment – for $250 million to AmerisourceBergen Corp.
In the retail pharmacy segment, revenue advanced 3.8 percent to $14.7 billion in the three months ended Sept. 30.
Larry Merlo, president and CEO, said he was “pleased” with the third-quarter results, which were “primarily driven by better-than-expected performance in our PBM, as well as accretion from our recently executed $1 billion accelerated share repurchase.”
“Our retail drugstore business continues to grow and gain share while our PBM continues to demonstrate success in the selling season, with strong client retention and significant new business,” Merlo added.
The company also reported results for the nine months ended Sept. 30, with a net income of $2.397 billion, slightly lower than last year’s $2.401 billion. Revenue for the period increased to $78.783 billion from $71.189 billion.
As of Sept. 30, CVS had 7,384 locations, including 39 new ones it opened during the third quarter.
