J.P. Morgan Discusses CVS' Integrated Offering

As part of CVS Caremark CVS Week, J.P. Morgan is discussing the company's “integrated offering.” “Given its unique position, the company has been able to develop unique programs to lower costs and improve outcomes,” J.P. Morgan writes. “Programs such as Maintenance Choice have had a positive impact on retail sales and margins. Further, we believe recent wins on the PBM side provide a key validation of the integrated model. “Our rating on CVS Caremark is Overweight as we are believers in the integrated PBM-retail pharmacy model and believe earnings growth should improve in 2012 driven by a reacceleration of growth in the PBM division. As a reminder, we will host a conference call tomorrow with Larry Merlo, CEO of CVS Caremark, where we will discuss current industry dynamics and the company's strategy.” CVS Caremark closed Monday at $37.25.