Notes from CVS Health 2016 Annual Analyst Day: Driving More Affordable, Accessible and Effective Care

Executive Summary

• CVS Health held its annual analyst day on December 15 in New York City. The main topics of the meeting were the company’s long-term growth drivers and its three main objectives: to make care more affordable, more accessible and more effective.
• CVS possesses the most extensive suite of industry-leading assets among its competitors. These provide touchpoints across all healthcare stakeholders—including health systems, providers, patients, the senior living segment, employers, government and health plans.
• CVS believes its pharmacy benefit management (PBM) business continues to be the best-positioned PBM. The business saw another successful selling season and is continually innovating to meet the latest healthcare challenges.
• The complexity of patients’ needs and of the market requires a broad set of interventions, and CVS’s stakeholders are seeking simplification. CVS’s unique, integrated PBM + Specialty model is best positioned to meet the diverse and complex needs of patients, payers and providers.
• CVS’s retail pharmacy business can be the best partner for all PBMs and health plans because it can leverage all of the company’s enterprise assets and offer a menu of bundled services that can provide significant value to payers. The front store business can support the pharmacy business and drive margins, particularly in health and beauty categories and in store brands.
• CVS reaffirmed its long-term financial targets of 10% growth in adjusted EPS and $7–$8 billion in annual cash generation for enhancing shareholder value through dividends, share repurchases and acquisitions.