Increasing prescription drug sales fueled third-quarter profit growth at CVS Health as executives worked to complete a $69 billion merger with Aetna.
Revenue at the Woonsocket, R.I.-based pharmacy chain grew 2.4 percent to $47.3 billion, supported by a nearly 10 percent increase in same-store prescription treatment sales. Profit rose 8.2 percent to $1.4 billion, or $1.36 per share, higher than analyst’s expected.
CVS and Aetna obtained federal approval for their merger in October. The firms are still awaiting sign-offs from five states and expect the transaction to close before the end of November.
Integration teams are “making great progress,” Chief Executive Officer Larry Merlo said, and will work after the deal closes to build the “revolutionary new model that will transform the healthcare experience for consumers.”
CVS’ stock rose 3.3 percent to $76.10 in pre-market trading in New York.
The Trump administration is said to be weighing a rule to revamp the current drug rebate program, a system under which pharmacy benefit managers negotiate price discounts with drug companies and keep a portion of the savings. Such a move could significantly impact the operations of CVS and fellow benefit managers like Express Scripts, which is preparing for its own merger with insurer Cigna.
