London, UK, ZEX PR WIRE –
The Healthcare Industry
The Healthcare industry is developing and advancing at a rapid pace. This rapid pace is driven by the enormous economic potential that exists in this sector, especially in developing countries with large populations. The pharmaceutical industry is likely to see substantial growth as countries focus on improving healthcare for their citizens.
This industry comprises establishments engaged in manufacturing and distributing drugs and medical/surgical supplies; providing services to hospitals, physicians’ offices, and other healthcare providers; and providing diagnostic imaging services.
Not only that, this industry also includes establishments engaged in manufacturing and distributing medical, surgical, dental, and veterinary equipment and supplies (except pharmaceuticals); as well as research activities related to public health.
The Influence Of The Pandemic
FinancialCentre Broker Daniel Hyman says that particularly after the pandemic, governments all around the globe have taken steps to improve healthcare facilities and spend billions of dollars on public health programs and are expected to continue doing so in the near future.
This serves as a great opportunity for this sector to thrive and take advantage of the growing demand. Growth in healthcare spending has a strong correlation with employment, income, and consumer confidence. As economies expand, more people will have access to healthcare services, rising incomes will provide greater purchasing power to consumers and thus new products are likely to sell at a faster rate. With the shift towards preventative care, there is likely to be an increase in demand for medical devices and diagnostic equipment. As a result, investment in this sector can prove economical as these developments are likely to enhance economic growth and create employment.
Keeping the current scenario in mind, we have picked one healthcare stock for you that can prove to be promising in the longer run.
CVS Health is a U.S.-based multinational retail pharmacy and health care company that provides pharmacy benefit management services to corporations, government programs, and individuals. Its business through the Caremark division also offers specialty pharmacies for other clients as well as mail order pharmacy services. It is based in Woonsocket, Rhode Island. In 2014, it was the third-largest drugstore chain in the U.S., behind Walgreens and Rite Aid.
CVS Health was formed as a result of the merger between CVS Corporation and Caremark Rx Inc. Today it specializes in retail pharmacy/pharmacy benefit management services. When the merger was finalized on November 12, 2007, it became the largest chain of drugstores in the United States with 7,646 locations throughout 46 states. CVS Pharmacy is also a subsidiary based in Woonsocket, RI. It was established in 1968 by Ralph Hoag with the purchase of a single drugstore in St. Louis, Missouri; it is currently headquartered in Woonsocket, RI. As of 2020, CVS Caremark now employs more than 300,000 people and operates over 7,000 retail pharmacies. It serves approximately 94 million plan members through its Caremark pharmacy benefit management (PBM) service. The company is one of the largest PBMs in the industry.
The company also owns an insurance company and a few retail health clinics, while Caremark comprises its PBM division, which provides prescription drug management services through pharmacy benefit management services to self-insured organizations and other clients. Its PBM offerings (Caremark) include drug benefits, disease and medical management services, health coaching, benefits administration, pharmacy claims processing, Medicaid speciality and long-term care services. CVS Caremark’s prescription service is operated by CVS Pharmacy; it also provides a wide range of front-end services including clinical programs for patients with chronic diseases such as asthma, diabetes and hypertension to support disease management and better health outcomes through medication adherence. Its retail pharmacies also offer services such as immunizations, advanced imaging (X-ray, ultrasound, CT scans), clinical lab tests and generic prescription drugs. Caremark also manages Medicare Prescription Drug Plans for the federal government and pensions. CVS Caremark is one of the three largest PBMs in the United States along with Express Scripts and OptumRx.
Today the company’s product portfolio features hundreds of generic drugs and a technology platform that provides an array of pharmacy, medical management, and clinical programs for its clients. CVS Caremark is also a provider of specialty pharmacy services (through Specialty Pharmacy) as well as mail order pharmacy services (through MediPlan).
The company’s growth plans include increasing the number of retail health care clinics under MinuteClinic that provide various services such as prescribing medications, online consults and medical tests in collaboration with physicians. The firm reported revenue of 268.7 billion US dollars in 2020 and for 2021 and they are expecting revenue between 280 to 285 billion US dollars. The company has been aggressively acquiring smaller companies and are set to buy the privately held Omnicare for $12.7 billion in cash and stock. The merger will result in the company having control of over 70 per cent of the market for pharmacy-benefit management services among Medicare beneficiaries. Mr Hyman thinks that the current progress and the future plans of the firm show that the increase in shares of CVS will soon be more than ever if the circumstances continue remaining in favour.
Disclaimer: Our content is intended to be used for informational purposes only.
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