CVS Health (NYSE: CVS) is the largest pharmacy services provider in the US comprising of the largest network of retail pharmacy stores nationwide along with pharmacy services and claims processing. The company’s pharmacy business, which makes revenues by sales of prescription drugs and provision of pharmacy related services, is expected to contribute $121 billion to CVS Health’s 2020 revenues, making up 47% of the company’s $257 billion in expected revenues for 2020. Its other businesses, Retail/LTC (Long Term Care) and Health Care Benefits are expected to generate $74 billion and $62 billion in revenues in 2020, accounting for 29% and 24% of total revenues, respectively.
CVS Health’s 2019 sales, in particular, will likely see a sharp jump of 30%, reflecting the impact of the Aetna acquisition in Q4 2018. The Aetna acquisition has provided the company access to the health insurance market, and the company accordingly has added a new business segment, Health Care Benefits, in its reporting. Below we discuss CVS Health’s business model, followed by sections that review past
Source: Forbes