Written by Amina Niasse
NEW YORK (Reuters) – CVS Health is exiting its core infusion services business and plans to close or sell 29 affiliated community pharmacies in the coming months, a company spokesperson confirmed to Reuters on Friday. .
Details of the strategic shift were announced in a CVS corporate memo dated October 8 and seen by Reuters.
On October 8, the company stopped accepting new patients seeking antibiotics, muscle health support medications and parenteral nutrition services, Sherry Bandit, senior manager of corporate communications, told Reuters.
CVS acquired drug infusion service provider Coram LLC in 2013 for $2.1 billion.
“Infusion drug providers continue to face a challenging environment in delivering the most highly specialized and complex services, and Coram is not immune to these challenges,” Bandit added. .
The company will continue to provide specialty medications, enteral and tube feedings at pharmacies in Minnesota, Pennsylvania and San Diego, and provide nursing services across the United States.
He said the company has not yet announced any layoffs and that affected employees will be notified in mid-November and their positions will end in January.
Patients who are still dependent on targeted therapy will be transferred to other infusion providers, Bandit said.
The move is unrelated to the company's plans to cut 2,900 corporate jobs.
“We plan to close 29 community pharmacies over the next few months, but we are also evaluating the possibility of selling these assets,” Bandit said.
Reuters reported in September that CVS was considering splitting its insurance and retail businesses amid intense investor scrutiny. The company lowered its profit forecast in August in anticipation of an increase in medical expenses in the second half of 2024.
Bandit said Coram offers on-site infusions as well as home therapy. Coram's Rhode Island store will also remain open, she said.
CVS stock was flat at $66.91 on Friday afternoon.
(Reporting by Amina Niasse; Editing by Caroline Humer and Bill Berkrot)
