CVS, operator of 7,600 pharmacy stores in the U.S., would be the first national pharmacy chain to take this step, the Woonsocket, Rhode Island-based company said in a statement today. The decision will cut annual revenue by about $2 billion, equating to 17 cents a share, CVS said.

The move comes as public health officials try to educate about 42 million U.S. adult smokers about the dangers of the habit. Last month, a report from the acting U.S. Surgeon General, Boris Lushniak, criticized the "fraudulent campaigns" by cigarette companies, weaknesses in regulation and a rebound in smoking depicted in Hollywood films. The study, which came half a century after smoking was first linked to lung cancer, cited new evidence that common ailments such diabetes, arthritis and impotence can be linked to tobacco use.

"Anytime a company puts public health and the long-term good ahead of short-term profit, it's sort of an eye opener," Ross Muken, a New York-based analyst at ISI Group, said in a phone interview today.