The clash between CVS andWalmart marked a noteworthy and unusual public struggle overhealth-care costs between two companies with enormous reach.(Photo: Shutterstock)

CVS Health Corp. shares climbed after the resolution of adisagreement over pricing that led Walmart Inc. to cut some ties with the health-care giantearlier this week.

In a statement by the companies on Friday, CVS said Walmart willallow its stores to continue to participate in CVS's pharmacy networks to provide prescription drugsto patients through commercial and managed Medicaid programs.Financial terms of the pact weren't disclosed.

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The agreement comes days after CVS said Walmart was withdrawingfrom its prescription networks. The retailer indicated at the timethat it was resisting an attempt by CVS to steer consumers tocertain pharmacies to have their prescriptions filled.

CVS shares gained more than 3 percent to $65.30 in premarkettrading in New York. Through the close of trading Thursday, sharesof the giant drugstore operator and pharmacy-benefits manager hadfallen 20 percent over the past year amid the wider struggles ofthe retail business and pushback in Washington overprescription-drug costs.

Walmart shares were unchanged early Friday.

The clash between CVS and Walmart marked a noteworthy andunusual public struggle over health-care costs between twocompanies with enormous reach. CVS's Caremark division is one ofthe largest administrators of prescription-drug plans in the U.S.,covering more than 93 million people. Walmart, the world's largestretailer, also is one of the biggest U.S. pharmacy operators.

Walmart had been demanding higher reimbursements from CVS forits pharmacies, CVS said in announcing the split earlier this week.Walmart took aim at the pharmacy-benefit management industry,saying in a statement at the time that the dispute “underscores theproblems that can arise when a PBM can exert their unregulatedpower to direct members on where to fill their scripts, disruptingpatients' health care.”

Walmart's continued participation gives CVS some 68,000pharmacies participating in its network throughout the U.S.

A CVS spokesman declined additional comment on the deal.

Read more: 

• Walmart taps former Humana exec for health carebusiness
• CVS now owns Aetna. What's next?
• Consumers may hate drug costs, but they like theirpharmacies

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