How is CVS Health expanding its digital reach?

CVS Health’s Revenue Growth

CVS Health grew its revenues by 2.6% in the second quarter, attributing this year-over-year improvement to its increasing number of digital customers, the introduction of biosimilar prescriptions, and the closure of underperforming stores.

Digital Customer Expansion

“We extended our digital reach with nearly 60 million unique digital customers utilizing our platform to schedule health services appointments, fill prescriptions, and purchase wellness products — all contributing to the growth in our business,” stated CVS Health President and CEO Karen S. Lynch during the company’s quarterly earnings call on August 7.

Biosimilar Prescriptions

Another highlight for the quarter is the processing of about 100,000 Cordavis biosimilar prescriptions since April 1, saving clients nearly $400 million, as noted in an earnings presentation.

Store Closures and Profitability

CVS Health is on track to meet its goal of closing 900 stores by the end of this year, with most remaining standalone stores being profitable. As of now, 851 stores have been closed.

Segment Performance

While CVS Health’s second-quarter revenues were up 2.6% compared to the previous year, results varied across its three business segments:

• Health Care Benefits: Revenues increased by 21.4% year over year, attributed to growth in Medicare and Commercial product lines.
• Pharmacy & Consumer Wellness: Revenues rose by 3.7%, driven by increased prescription volume, although offset by decreased front store volume due to store closures.
• Health Services: Revenues declined by 8.8%, primarily due to the loss of a large client and ongoing pharmacy client price improvements.

Conclusion

Overall, Lynch emphasized, “We have many points of differentiation that position CVS Health to win. Our biggest differentiator is how we are bringing our assets together to deliver integrated solutions for our customers.”