(Reuters) – CVS Well being Corp reported better-than-expected second-quarter earnings on Wednesday and mentioned it had begun a restructuring program to chop prices after a current wave of acquisitions.
The corporate has expanded past medical health insurance and pharmacies with its acquisitions of main care supplier Oak Road Well being and residential healthcare companies firm Signify Well being.
CVS Well being, which accomplished the acquisitions earlier this 12 months, has recognized higher-than-expected transaction and integration prices associated to the offers.
The corporate mentioned it recorded $496 million in pretax prices associated to a restructuring program it initiated throughout the quarter to scale back prices.
CVS, which has a big retail pharmacy chain, a well being insurer and a pharmacy profit administration (PBM) unit, mentioned it will pause acquisitions within the close to time period however could take a look at “further alternatives” over an extended time period.
Excluding objects, the corporate reported earnings of $2.21 per share, above the common analyst estimate of $2.11 per share, buoyed by the energy of the PBM unit, which negotiates drug costs with producers.
Gross sales in CVS’ well being companies phase, which accommodates the PBM unit, elevated 7.6% to $46.22 billion within the reported quarter in comparison with the prior 12 months.
(Reporting by Khushi Mandwara and Banvi Satja in Bengaluru; Enhancing by Vinay Dwivedi)
