CVS Caremark

Type: Public
Founded: 1963
Headquarters: Woonsocket, Rhode Island
Key people: CEO: Thomas M. Ryan
Industry: Food and Drug
Products: Retail - Pharmacy, Prescription Benefit Management
Website:http://www.cvscaremark.com

General Information

CVS Caremark Corporation, NYSE: CVS is an integrated pharmacy services provider, combining one of the U.S.'s leading pharmaceutical services companies with the country’s largest pharmacy chain. The company fills or manages more than one billion prescriptions per year, more than any other pharmacy services provider. CVS Caremark provides pharmacy services through its 6,200 CVS/pharmacy stores; its pharmacy benefit management, mail order and specialty pharmacy division, Caremark Pharmacy Services; its retail-based health clinic subsidiary, MinuteClinic; and its online pharmacy, CVS.com. CVS Caremark Corporation is chartered in Delaware, and is headquartered in Woonsocket, Rhode Island, where its pharmacy business is also headquartered. The pharmacy services business is headquartered in Nashville, Tennessee.

Business Model

CVS Caremark has two operating segments: CVS/pharmacy and Caremark Pharmacy Services.

CVS/pharmacy is the nation's largest retail pharmacy chain, with approximately 6,200 stores across 38 states. With more than 40 years in the retail pharmacy industry, CVS/pharmacy generates over 68% of its revenue from the pharmacy business. CVS/pharmacy fills more than one of every seven retail prescriptions in America, and one of every five in their own markets. Their ExtraCare program boasts over 50 million cardholders, making it the largest retail loyalty program in the country.

Caremark Pharmacy Services, one of the nation's leading pharmacy benefit management (PBM) companies, provides comprehensive prescription benefit management services to over 2,000 health plans, including corporations, managed care organizations, insurance companies, unions and government entities. With net revenue of approximately $37 billion (including approximately $5.8 billion of retail copayments) in 2006, they are also one of the largest PBMs. Caremark operates a national retail pharmacy network with over 60,000 participating pharmacies, as well as 11 mail service pharmacies. Its call centers have been recognized for customer satisfaction excellence by J.D. Power & Associates. Caremark operates over 70 specialty pharmacies, and its specialty pharmacies have been accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO). Its disease management programs through Accordant(R) have also been accredited by the National Committee for Quality Assurance.