WOONSOCKET, R.I. (AP) — Shares of CVS Caremark Corp. rose Tuesday after the company said it expects that profits at its Caremark pharmacy benefits management business will grow in 2012, reversing two years of declines.

The company said net income for Caremark should grow 11 to 15 percent based on its acquisition of Universal American Corp.'s Medicare Part D business, billions of dollars in new contract wins, a deal with health insurer Aetna Inc. and better drug pricing. In 2012 profit from the CVS drugstore chain is expected to rise 7 to 9 percent, about the same as in 2011. CVS Caremark forecast a profit of $2.93 to $3.03 per share for the full year, or $3.15 to $3.25 per share excluding one-time items.

Analysts expect the company to report income of $3.20 per share, according to FactSet.

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

© 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.