Moody’s lauds CVS

NEW YORK – Moody’s Investors Service said Tuesday that out of the largest U.S. pharmacy benefits managers, it has the highest opinion of CVS Caremark Corp., The Associated Press reported.
Moody’s said CVS’ retail business provides diversity; the combination of a pharmacy-benefit manager and a drugstore chain gives the company a unique business model. CVS can save money on buying drugs in large quantities and encourage pharmacy-benefit members to go to CVS stores.
Moody’s held its investment-grade credit rating for CVS, Medco Health Solutions Inc., and Express Scripts Inc., at Baa.
All three companies will benefit from the concerns about rising health care costs and new generic drugs, but could be hurt by lower membership in commercial health plans, Moody’s said.
Medco, which focuses on patients, could provide a greater variety of services than its competitors, while Express Scripts may have the advantage in terms of financial flexibility, Moody’s said.