CVS Health

CVS Health Corporation (NYSE:CVS) is a US healthcare company that owns several brands including retail pharmacy chain CVS Pharmacy, pharmacy benefits manager CVS Caremark, and health insurance provider Aetna. Initially, CVS Health Corporation was known as CVS Caremark Corporation. However, in September 2014, the company changed its corporate name to reflect its overall commitment to health care. In FY2022, the company generated ~USD 322 billion in annual revenues. As of 2022, CVS Health was one of the largest companies in the US with ~300,000 employees and was ranked the third-largest healthcare company globally by Forbes Global 2000 , based on metrics like sales, profits, assets, and market value. In 2022, CVS Health ranked fourth on the Fortune 500 and placed 27th among 50 all-stars on Fortune’s World’s Most Admired Companies list. In 2021, the company was named to the S&P Dow Jones Sustainability North American Index for the ninth consecutive year and the Dow Jones Sustainability World Index for the third consecutive year.

CVS Health operates across four broad reporting segments: health care benefits, pharmacy services, retail/long-term care, and corporate/other. The retail/long-term care segment is its largest revenue contributor, accounting for ~46% (2022) of annual revenues. Within this segment, products represented the biggest contributor to segmental revenue (~97% in 2022), followed by services (~3%). In terms of distribution channels, pharmacy networks constituted the biggest contributor to segmental revenues (~77% in 2023), followed by front store (~21%) and other (~2%).

CVS Health primarily operates in the US, which includes Puerto Rico, the District of Columbia, Guam, and the US Virgin Islands. In December 2021, it presented its strategy around making health care more convenient, personalized, and affordable by focusing on its high-growth foundational businesses while expanding its primary care delivery. As part of the pivot to primary care centers, CVS Health also announced plans in December 2021 to optimize its retail portfolio by closing ~900 stores (~10% of its footprint) over the next three years. The company also planned to launch new all-payer health products and services to diversify its growth portfolio while enhancing omnichannel health services and driving a digital-first approach.