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CVS Health Introduces Transform Diabetes Care Program
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CVS Health Corporation (CVS - Free Report) , a retail pharmacy and health care company, recently rolled out a program – Transform Diabetes Care. The program will help the company's pharmacy benefit management (PBM) clients improve health outcome of diabetic patients and bring down medical costs associated with the disease by improving medication adherence, glycated hemoglobin (A1C) control and lifestyle management.
For quite some time now, CVS Health has had a dismal price performance. In the last six months, the company’s share price has lost 17.8%, wider than the Zacks categorized Retail-Drug Stores Sub industry’s 9.1% decline. The company’s share price was dealt another blow by the company’s mixed third-quarter results.
On a positive note, CVS Health’s Pharmacy Services segment clocked year-over-year growth in the Specialty Pharmacy business while the Retail Pharmacy division gained from increased same-store sales. We believe that the newly-launched Transform Diabetes Care program will help boost the company’s share price. Meanwhile, CVS Health has a 5-year CAGR revenue of 9.4%, reflecting its strong fundamentals in its long run growth.
Let us now delve into the details of CVS Health’s new program. Transform Diabetes Care seeks to apply analytics to improve health management for those with diabetes under PBM. The program seeks to cut pharmacy costs through “aggressive trend management” by educating enrolled members to improve medication adherence, better track and control A1C levels and support healthy lifestyle behaviors.
Management claims that its PBM clients could save $3000 to $5000 a year for each member who succeeds in gaining better control over diabetes.The program will be available in early 2017 at CVS Health’s consumer touch points which include its retail pharmacies and Minute Clinics.
Transform Diabetes Care is the first of its kind under CVS Health’s Transform Care programs as it focuses on managing an expensive chronic condition. It also adds to the set of diabetes programs and services provided by CVS Health. Studies have shown that through better lifestyle management, medication adherence and control of A1C, health can improve and medical costs can be significantly brought down.
There has been an alarming rise in the diabetic population globally and CVS Health believes that anti-diabetic drugs are quite expensive. Thus, clients enrolled under the Transform Diabetes Care program will have a year-over-year drug trend (growth in the year-over-year spend per member per year) guarantee for the anti-diabetic drug category, which will vary based on demographics and spend profile of the patients. The company’s latest launch is thus quite strategic and timely and will expand the company’s PBM business globally.
Zacks Rank & Key Picks
CVS Health has a Zacks Rank #4 (Sell).
Better-ranked medical stocks are NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 27.5% over the last one year compared to the S&P 500’s 10.7%. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 20.1% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 134.5% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
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CVS Health Introduces Transform Diabetes Care Program
CVS Health Corporation (CVS - Free Report) , a retail pharmacy and health care company, recently rolled out a program – Transform Diabetes Care. The program will help the company's pharmacy benefit management (PBM) clients improve health outcome of diabetic patients and bring down medical costs associated with the disease by improving medication adherence, glycated hemoglobin (A1C) control and lifestyle management.
For quite some time now, CVS Health has had a dismal price performance. In the last six months, the company’s share price has lost 17.8%, wider than the Zacks categorized Retail-Drug Stores Sub industry’s 9.1% decline. The company’s share price was dealt another blow by the company’s mixed third-quarter results.
On a positive note, CVS Health’s Pharmacy Services segment clocked year-over-year growth in the Specialty Pharmacy business while the Retail Pharmacy division gained from increased same-store sales. We believe that the newly-launched Transform Diabetes Care program will help boost the company’s share price. Meanwhile, CVS Health has a 5-year CAGR revenue of 9.4%, reflecting its strong fundamentals in its long run growth.
Let us now delve into the details of CVS Health’s new program. Transform Diabetes Care seeks to apply analytics to improve health management for those with diabetes under PBM. The program seeks to cut pharmacy costs through “aggressive trend management” by educating enrolled members to improve medication adherence, better track and control A1C levels and support healthy lifestyle behaviors.
CVS HEALTH CORP Price and Consensus
CVS HEALTH CORP Price and Consensus | CVS HEALTH CORP Quote
Management claims that its PBM clients could save $3000 to $5000 a year for each member who succeeds in gaining better control over diabetes.The program will be available in early 2017 at CVS Health’s consumer touch points which include its retail pharmacies and Minute Clinics.
Transform Diabetes Care is the first of its kind under CVS Health’s Transform Care programs as it focuses on managing an expensive chronic condition. It also adds to the set of diabetes programs and services provided by CVS Health. Studies have shown that through better lifestyle management, medication adherence and control of A1C, health can improve and medical costs can be significantly brought down.
There has been an alarming rise in the diabetic population globally and CVS Health believes that anti-diabetic drugs are quite expensive. Thus, clients enrolled under the Transform Diabetes Care program will have a year-over-year drug trend (growth in the year-over-year spend per member per year) guarantee for the anti-diabetic drug category, which will vary based on demographics and spend profile of the patients. The company’s latest launch is thus quite strategic and timely and will expand the company’s PBM business globally.
Zacks Rank & Key Picks
CVS Health has a Zacks Rank #4 (Sell).
Better-ranked medical stocks are NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 27.5% over the last one year compared to the S&P 500’s 10.7%. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 20.1% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 134.5% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>