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(Reuters) -CVS Well being Corp will shut about 900 shops over the following three years, it mentioned on Thursday as the corporate tries to adapt to altering client preferences by pivoting to new retailer codecs that supply extra well being providers.
Finest recognized for its chain of drugstores in additional than 9,900 places, the corporate has been working to broaden its providers because it acquired well being insurer Aetna (NYSE:) in 2018.
CVS mentioned that as a part of its strategic assessment it might create an enhanced model of its well being hubs that supply remedy for frequent illnesses in addition to power care so as to add extra clients.
The discount in shops will end in CVS taking an impairment cost of between $1 billion and $1.2 billion within the fourth quarter.
As a part of the brand new technique, the corporate additionally created a brand new place of chief pharmacy officer and appointed government vp of specialty pharmacy and product innovation Prem Shah to the function.
“We see this as according to our anticipated LT (long-term) technique for CVS, transferring to develop managed care and care supply, whereas shrinking legacy bricks-and-mortar retail enterprise,” mentioned Bernstein analyst Lance Wilkes in a notice.
Rival Walgreens Boots Alliance (NASDAQ:) additionally just lately shifted focus past its drugstores, investing $5.2 billion in VillageMD and $330 million in post-acute and residential care supplier CareCentrix.
CVS lower its annual 2021 revenue per share forecast to between $5.46 and $5.67 from $6.13 to $6.23, however caught to its adjusted revenue view saying there shall be no influence from the shop closures this yr and the following.
It additionally mentioned Neela Montgomery, president of CVS Pharmacy, would depart firm on the finish of 2021.
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