J.P. Morgan Comments on CVS' Integrated Offering

In a research report published this morning, J.P. Morgan discussed CVS Caremark's CVS integrated offering as a part of its Caremark Week. According to J.P. Morgan, “The combination of the retail pharmacy and PBM businesses has allowed the company to develop unique and differentiated programs to lower costs and improve health outcomes. Programs such as Maintenance Choice have had a positive impact on retail sales while also helping to win PBM business. In our view, strong new business trends on the PBM side provide a key validation of the integrated model. In the following note, we discuss several of these unique offerings, and the benefits that CVS has seen over the past few years.” J.P. Morgan maintains its Overweight rating and $50 PT on CVS, which closed yesterday at $44.91.