Will CVS Health remain a driving force after COVID-19 ends?

As demand for COVID-19 testing and vaccination dwindles, CVS Health must prove that it can continue to grow and maintain customers, CNBC reported Feb. 9.

Pandemic-related services drove CVS sales and customer engagement as the pharmacy administered more than 32 million COVID-19 tests and more than 59 million COVID-19 vaccines. But as cases around the country decrease, CVS will need to work on maintaining its ambitions of becoming a healthcare destination, according to the report.

On a Feb. 9 earnings call, Shawn Guertin, chief financial officer of CVS, said he expects COVID-19 vaccines to drop by 70 percent to 80 percent and in-store testing to decline by 40 percent to 50 percent, compared to 2021. 

The only exception coming from COVID-19 at-home tests, which the company sold more than 22 million in its fourth quarter. 

But, Karen Lynch, chief executive of CVS, said in the earings call, that the pandemic only deepend customer loyatly to the phamracy and increased digital customers of CVS' website to 40 million. 

"Our work to test and vaccinate America for Covid is a powerful example of the relationship we’re building with consumers, which leads to new customers seeking a range of other health services at CVS Health," Ms. Lynch said. 

In 2018, CVS acquired health insurer Aetna, and it owns pharmacy benefits manager Caremark. CVS has also closed about 900 store locations, with plans to open primary care clinics. If CVS can maintain the momentum from the pandemic with customers, it can reap the benefits of long-term growth to reach its healthcare aspirations, according to the report.

 

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