CVS Health states that the peak of Covid vaccination has already occurred

A woman broke into the CVS Covid-19 vaccination site in Monterey Park, California on April 27, 2021.

Frederick J. Brown | AFP | Getty Images

CVS health CEO Karen Lynch said Wednesday that the peak of Covid-19 vaccination was behind the company.

On the revenue phone, she said the drugstore chain manages 30 million shots and continues to offer them in stores across the country. Still, she said vaccination rates have slowed since April — Even if the coronavirus delta mutant leads to a surge in new cases In some countries with a large unvaccinated population.

Sean Gartin, CVS’s chief financial officer, said on the phone that he had lowered his outlook for the number of vaccines he plans to administer this year after the number of vaccines he offers declined in May and June. He said the company expects to give doses of 32 to 36 million this year. This is lower than the expected dose of 29-44 million in February.

but, Retailers have raised their earnings forecasts for the year.

CVS provides up-to-date information on vaccination, Share second quarter results Between the inflection points Coronavirus pandemic..Over 70% of adults in the United States I got the Covid vaccine at least once, But the case Rapidly rising in states such as Florida and Texas Where the vaccination rate remains low. The seven-day average of coronavirus cases per day in the country is higher than last summer’s peak when the United States did not yet have an approved Covid vaccine.

The increase in cases boosted by Delta variants Some retailers reinstate mask obligations, Enterprise Request vaccination When Politicians announce new security measures. In addition, new uncertainties have arisen as companies seek to return employees to the office for revenue forecasts.

Drugstore competitors Walgreens Boots Alliance Said on wednesday Immunization rates have skyrocketed in recent weeks In lagging states such as Alabama, Florida, Georgia, and Kentucky. It is said that more than 29 million Covid vaccines were administered at the store.

Guertin said CVS is trying to understand what Delta Variant means for its business, including the acquired health insurance company Aetna. He said it did not take booster shots into account in its year-round outlook and included limited contributions from pediatric vaccines.

CVS made a high profit compared to the latest in the second quarter of last year as the medical facility canceled the elective surgery to release the bed. Some people have begun to cancel these procedures again, but it’s too early to see how widespread they will be, Gartin said.

He said vaccinations decreased in July compared to the previous month, but increased as the delta mutant encouraged some people to receive their first dose. Covid testing and retail sales in stores continue to be strong, he said.

However, he said the company’s Covid-related costs were also higher than expected in terms of the health benefits of the business. This cost persists when more people need treatment.

Ashtin Evans, a stock research analyst at Edward Jones, said he didn’t expect CVS to see the same level of cost savings and sales growth during this wave of the pandemic. For example, she said, customers are unlikely to repeat a large stockpile of prescriptions and health supplies. In addition, Evans said that even if the elective surgery is late, it can only be postponed for a very long time. She also said that if more people were hospitalized for Covid-19, the company would have to absorb higher medical costs.

Going forward, CVS needs to drive growth and profit in other ways, Evans said.

-Reuters contributed to this report.

CVS Health states that the peak of Covid vaccination has already occurred

Source link CVS Health states that the peak of Covid vaccination has already occurred

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