Raine WarrenCVS Health Inc.'s stock, CVS, experienced a 3% premarket rise on Tuesday after the drugstore chain provided guidance for 2023 and set expectations for 2024 that exceed market consensus. The company anticipates an adjusted EPS of at least $8.50 and revenue surpassing $866.0 billion in 2024. This outlook is reassuring, as it beats the FactSet consensus of an EPS of $8.51 and revenue of $344.5 billion. CVS Health also maintains its projection for 2023 with an adjusted EPS ranging from $8.50 to $8.70 and revenue between $351.5 billion and $357.3 billion.
Introducing CVS CostVantage
Coinciding with the release of guidance, CVS Health introduces CVS CostVantage, a groundbreaking reimbursement model that enhances transparency in the industry. With this model, the company aims to redefine drug costs and related reimbursement within contracted pharmacy benefit managers (PBMs) and payors. By utilizing a transparent formula based on the drug's cost, a predetermined markup, and a fee reflecting the value of pharmacy services, CVS CostVantage seeks to improve clarity in pricing.
Unveiling CVS Caremark TrueCos
CVS Health is taking steps to provide greater visibility into administrative fees with the launch of CVS Caremark TrueCos. This new pricing program specifically targets prescription drugs and intends to offer clear insight into the various administrative costs involved.
Rebranding Health Services Segment
Starting this month, the company's Health Services segment will undergo a rebranding effort and will be known as CVS Healthspire. This change aligns with CVS Health's mission to continually innovate and improve healthcare services for its customers.
Dividend Increase and Upcoming Payment
In addition to these exciting developments, CVS Health announces a 10% increase in its quarterly dividend, from 60.5 cents to 66.5 cents. Shareholders of record as of January 22 can expect to receive the new dividend on February 1.
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