CVS 2Q profit falls, announces deal with Aetna

[July 28, 2010]  NEW YORK (AP) -- CVS Caremark Corp. says it struck a large pharmacy benefit management services contract with health insurer Aetna Inc., and says its profit fell 7 percent in the second quarter.

Caremark of Woonsocket, R.I., will administer Aetna's pharmacy benefits management services for 12 years starting Jan. 1. The companies say Caremark will serve about 9.7 million Aetna PBM members and administer $9.5 billion in drug spending per year.

CVS Caremark says its profit fell because of contracts lost by Caremark. Net income fell to $821 million from $886 million. On a per-share basis, profit was unchanged at 60 cents. Revenue fell 3 percent to $24 billion from $24.87 billion.

Thomson Reuters says analysts expected a profit of 68 cents per share and $24.13 billion in revenue.

[Associated Press]

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