Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

CVS Caremark (CVS - Analyst Report) recently extended its innovative Pharmacy Advisor program to cover five additional chronic conditions, namely asthma, depression, osteoporosis, breast cancer and chronic obstructive pulmonary disease.

These condition-based programs are an interventional measure to inform pharmacists when patients are non-adherent to their medication regimen or have suffered a gap in care. Prior to the extension, CVS’s Pharmacy Advisor was directed at diabetes and cardiovascular conditions, with more than 3.8 million interventions to date.

CVS witnessed an additional uptake in Pharmacy Advisor program in 2012 and the recent extension reflects its high success rate. The extension should further drive adoption rates by increasing the number of lives covered under Pharmacy Advisor. This is likely to increase the profitability of CVS going forward.

The Need for Pharmacy Advisor

According to estimates, medication non-adherence costs the U.S. economy up to $300 billion annually. Studies reveal that low medication adherence is associated with chronic conditions. Further, the incidence of medication persistence (length of time a patient continues to take a prescribed drug) is lower for individuals with chronic diseases.

As per the New England Healthcare Institute, medication adherence programs for individuals can reduce healthcare costs and improve patient outcomes. Further, a study published in the Health Affairs journal suggests that intervention by pharmacists can reduce gaps in care. In light of these facts, the extension of Pharmacy Advisor should improve medication adherence for chronic conditions across the U.S.

Our Rank

The extension of the Pharmacy Advisor is the latest addition to CVS’s several near-term growth drivers. With a favorable selling season, its fourth-quarter and annual results sailed past the corresponding Zacks Consensus Estimates. The company’s forecast for 2013 also encourages market sentiments.

Given this backdrop, the estimate revision trend for CVS reflects a bullish sentiment. Consequently, the stock carries a Zacks Rank #2 (Buy). Besides CVS, ResMed (RMD - Analyst Report), Medical Action and MedAssets Inc (MDAS - Snapshot Report), carrying a Zacks Rank #1 (Strong Buy) are expected to do well.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 34.24 +11.28%
CHINA DISTAN DL 14.99 +5.71%
E HOUSECHINA EJ 10.63 +5.67%
GENTHERM INC THRM 36.66 +5.47%
NOAH HOLDING NOAH 13.96 +5.04%