Higher drug prices lift CVS results

CVS Health posted quarterly profit that beat expectations as revenue shot up nearly 23%, rising across its range of businesses.

Fred Katayama reports.

CVS posted a higher-than-expected quarterly profit on Wednesday, saying its drug stores sold more medicines and charged higher prices for branded drugs.

The company has been trying to pull in more customers to its outlets by offering services such as chronic care management for diabetes through a pilot program.

Revenue shot up nearly 23%, rising across its range of businesses.

Higher prescription drug prices also boosted results at its pharmacy benefit management unit, CVS Caremark, that negotiates drug discounts for health insurers and employers.

And sales nearly tripled at its health insurance business now that it includes Aetna.

CVS completed its acquisition of Aetna in November 2018 for $69 billion in the hopes of lowering costs.

Shares of CVS are higher in early trading Wednesday.