CVS operates in two segments: Pharmacy Services and Pharmacy Retail. Pharmacy Services provides pharmacy benefit management (or PBM) services to customers, including employers, managed Medicaid plans and health plan sponsors. Pharmacy Retail includes the sale of prescription and OTC (over-the-counter) drugs, beauty and personal care products, and more. There are four segments that compose CVS Health: CVS Pharmacy, CVS Caremark, CVS Minute clinic, and CVS Specialty. CVS Pharmacy offers: pharmacists dispense medication, vaccinations, advice on prescription, nonprescription drugs and supplements, beauty departments, convenient photo labs, a wide selection of general merchandise, and an online Pharmacy. CVS Caremark is responsible for pharmacy benefit management and prescription mail order services. The CVS Minute Clinic takes care of minor Injuries and Illnesses, screenings and monitoring, vaccinations and Injections, and physicals. Additionally, CVS Specialty offers patients choice and flexibility
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CVS entered this industry relatively late, and has plenty of room to grow. MinuteClinic has only 1.5% market share, well below the 21% of the market that CVS’s pharmacy and specialty operations each account for. The company plans to add another 600 such clinics by 2017.
CVS’s specialty department handles the high-end, complex, life-sustaining and prohibitively expensive drugs that operate on low volume but gigantic prices. The drugs that are distributed in in this sector is rare which makes them expensive for the consumer, but lucrative for CVS. Due to the fact that the drugs are so rare, costly, and specialized, they necessitate a CVS department. The specialty revenues were $21 billion in 2013 in 2015; CVS Health’s pro forma specialty pharmacy dispensing revenues grew by more than 40%, to an estimated $29.6 billion. Its market share also increased to 30%, from 26% in
CVS entered this industry relatively late, and has plenty of room to grow. MinuteClinic has only 1.5% market share, well below the 21% of the market that CVS’s pharmacy and specialty operations each account for. The company plans to add another 600 such clinics by 2017.
CVS’s specialty department handles the high-end, complex, life-sustaining and prohibitively expensive drugs that operate on low volume but gigantic prices. The drugs that are distributed in in this sector is rare which makes them expensive for the consumer, but lucrative for CVS. Due to the fact that the drugs are so rare, costly, and specialized, they necessitate a CVS department. The specialty revenues were $21 billion in 2013 in 2015; CVS Health’s pro forma specialty pharmacy dispensing revenues grew by more than 40%, to an estimated $29.6 billion. Its market share also increased to 30%, from 26% in