CVS Caremark Corp. gained millions of new prescriptions in the first quarter due to a contract impasse between two rivals, and now the drugstore chain wants to keep the growth going by ensuring that those customers stick around and use the rest of its store.

The Woonsocket, R.I., company said Wednesday its first-quarter earnings climbed 9 percent, and it raised its profit forecast for 2012 because the end of a contract between Walgreen Co. and Express Scripts Inc. prompted Walgreen customers to migrate to CVS stores. Walgreen, the nation's largest drugstore chain stopped filling prescriptions for Express Scripts, the biggest pharmacy benefits manager, at the end of 2011, when a contract between the two companies ran out.

CEO Larry Merlo estimates that his company filled about 5.7 million to 6.5 million additional prescriptions in the first quarter due to Walgreen-Express Scripts dispute, which added about 3 cents per share to his company's earnings. All told, CVS Caremark filled more than 179 million prescriptions at its retail pharmacies in the first three months of 2012.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.