CVS Caremark up; analyst dismisses Wal-Mart program impact
NEW YORK—CVS Caremark Corp.'s stock rose Monday as a Goldman Sachs analyst said Wal-Mart Stores Inc.'s expanded generics program should not hurt the nation's biggest pharmacy chain.
Earlier in the day Wal-Mart, the world's largest retailer, said it would expand its discounted prescription drug program to offer 90-day supplies for $10 and add several women's medications at a discount.
The move marks the third phase of a company program that began in 2006 to provide a 30-day supply of generic prescription drugs for $4. Almost all the prescription generics in the company's $4 program were included in the expanded $10 offer, according to Wal-Mart.
"Because CVS's Caremark unit is largely isolated from these developments, the shares should hold up well today," analyst John Heinbockel wrote in a note to investors.
The analyst said Wal-Mart's plan to expand its 30-day generics program to include six more drugs could have the biggest potential impact, but pointed out that the overall changes Wal-Mart is making are not meaningful enough to weigh on CVS Caremark's results.
Shares of Woonsocket, R.I.-based CVS Caremark added $1.38, or 3.4 percent, to $41.81. Over the past year, the stock has traded in a range of $34.80 to $42.60.
