Replies to post #350 on CVS Health Corporation (CVS)

[FUNMAN]

(See Blue) CVS says the impact of customer engagement will be ‘immaterial’ to adjusted earnings per share in 2021 --- >>> BULL - FUNMAN

Published: Feb. 22, 2021 at 11:05 a.m. ET
By Tonya Garcia

CVS says COVID testing and vaccinations will put the company in contact with millions of new customers.

CVS Health Inc. CVS, -0.21% is looking forward to the chance to meet tons of new shoppers in the coming months as it administers the COVID-19 vaccine, offering the pharmacy retailer a unique business opportunity.

CVS has provided COVID-19 testing, with about 15 million tests administered at its 4,800 locations across the country, according to Karen Lynch, chief executive of CVS.

The pharmacy retailer has also launched a program, Return Ready, designed to help companies and universities prepare for the return of workers and students, with 100 clients enrolled.

The federal government selected CVS to administer COVID vaccines at long-term care facilities, administering more than three million doses to patients and workers. By mid-March, CVS says it will have administered both doses of the vaccine at assisted-living facilities.

As part of President Joseph Biden’s COVID vaccination plan, CVS will administer 250,000 COVID immunizations across 11 states.

“Millions of new customers will engage with CVS Health for the first time through testing and vaccine administration services,” Lynch said during last week’s earnings call, according to FactSet.

“It will create the opportunity to expand our customer base, while deepening relationships with current customers.”

Truist analysts say there are a few factors that set CVS up for gains, including “market pressures, rising patient consumerism and increased demand for de-centralized care.” Expanding access to low-cost care through MinuteClinic and expanding its virtual care offering are just a couple of examples.

“The company’s meaningful COVID testing/vaccine response is offering
additional patient connectivity (most signing up digitally), broadening the new customers playing field and we see the potential for additional acceleration as vaccine distribution further ramps,” David MacDonald said.

Truist rates CVS stock buy with an $80 price target.

Even with all of the interaction CVS says COVID-19 “is expected to have an immaterial impact” on 2021 adjusted earnings per share.

How can that statement be true? - FUNMAN

CVS reported a fourth-quarter EPS and adjusted EPS decline, though results beat the FactSet consensus. Higher revenue also beat the FactSet consensus.

“COVID-19 is expected to have a benefit to the retail/long-term care segment and have an unfavorable temporal impact to the health care benefits segment,” Eva Boratto, CVS’ chief financial officer, said on the earnings call.

JPMorgan analysts note that COVID-19 was a 25-cents-per-share net adjusted EPS tailwind in 2020.

“Within the retail/long-term care segment in 4Q, the company pointed to lower pharmacy volumes from a reduction in new therapy prescriptions, including fewer seasonal flu prescriptions, reduced front store traffic and volume from a lower cough/cold/flu season, incremental costs ahead of vaccine administration, and benefits from diagnostic testing,” analysts said.

Very interesting. - FUNMAN

Still, JPMorgan thinks the company is well-positioned for a future that includes new reimbursement models, the “retailization” of healthcare, and the need for cost savings.

“We continue to believe the ability to leverage medical, pharmacy and lab data to target interventions, improve member engagement to drive behavior change, and drive care to lower cost settings will drive improved quality of care, better outcomes and lower overall healthcare costs, which will ultimately drive profit growth,” analysts said.

JPMorgan rates CVS shares overweight with a $102 price target.

Nice - FUNMAN

Watch: How telehealth could become a $175 billion market in the next 5 years

Mizuho analysts are also upbeat about the increasingly diverse nature of CVS’ business. Moreover, as the COVID pandemic comes to a close, colds and the flu should make a return.

“The weak cold/flu season is expected to continue in 1Q:21 and likely 4Q:21,” Mizuho said. “We view this a transitory issue that should normalize in 2022.”

Mizuho rates CVS stock buy with an $82 price target.

CVS shares are up 4.7% over the past three months, but have fallen 2.8% over the last year. The benchmark S&P 500 index SPX, -0.22% has gained 16.4% over the last 12 months.

[FUNMAN]

Lyft partners with CVS to increase accessibility of the COVID-19 vaccine

Tue, February 23, 2021, 10:50 AM

https://finance.yahoo.com/video/lyft-partners-cvs-increase-accessibility-155034775.html

Megan Callahan, vice president Of Lyft Healthcare, joins Yahoo Finance to discuss increasing accessibility of COVID-19 vaccine in vulnerable populations and trends foreseen in the transportation industry post pandemic.

- Ride sharing giant Lyft is lending a hand. Or in this case, a ride to folks trying to get their COVID-19 vaccine. Let's welcome in Lyft health care vice president Megan Callahan for more on this. Megan, good to see you this morning.

Walk us through what you are precisely doing in helping to get people get their vaccine?

MEGAN CALLAHAN: Yeah, happy to share. And thanks for having me here today. We're teaming up with CVS to address equitable vaccine access in vulnerable populations.

We believe that 15 million people will face transportation issues trying to get to vaccine sites. And ensuring access for those who need it most will be the largest logistical challenge of our lifetime. So our partnership with CVS enables us to support equitable vaccine access in communities that need it most.

What your viewers might not know, Brian, is that lift today is one of the largest providers of non-emergency medical transportation in the country. We partner with thousands of health care organizations to get patients to medical appointments every day. Vaccines are, of course, included in that. And we're doing those rides today.

But for people that don't have the health care organizations that's arranging and paying and sponsoring a ride for them, if you're uninsured, if you're at risk, we are also working with large corporate organizations such as JPMorgan Chase and Anthem to raise funds for vaccine rides. And then through the large network of community benefit organizations that we worked with for years, we're distributing that ride credit within communities that need it the most.

- I know Megan, you mentioned the target here is for underserved communities that may not have access to facilities that are providing vaccines. How have you guys thought about approaching the issue of making sure people are aware that they have access to this ride? You know, they might not even be users or even have a smartphone. How are you guys kind of handling that problem?

MEGAN CALLAHAN: That's a great question. So the first way that we're handling that is through our health care business. So in that health care business you do not need to have a smartphone. You've got a health system, a health plan. If you're a Medicaid member for example, or Medicare Advantage member, you've got an organization that's provided you with a phone number, given your resources. And you can call them and ask them if transportation is covered within your health care plan. And they will arrange the ride for you.

If you are not, then these community benefit organizations that are in low income at risk communities around the country will be doing patient outreach. And then also, of course, building inbound calls, assessing who needs transportation, and then providing the rides to those people.

- Megan, so after we move beyond the worst of the pandemic-- hopefully soon-- but once we do, what is your business look like? I'm really curious on what trends you're seeing in the business during COVID that you're going to try to expand upon as we move past it?

MEGAN CALLAHAN: Yeah, well, I'll speak from a health care angle given that that's my area. I mean, I think one thing that COVID has really done is shown the inequities in our health care system and the importance of transportation. It's the most fundamental kind of health care access is being able to get where you need.

We're seeing all kinds of stories right now-- of seniors who are traveling on buses, taking 34 stops to get their vaccine. So I think it's really raised the issue in people's minds. We're seeing organizations around the country start to invest more in transportation to keep people healthy. And I think we'll see more of that after COVID.

- Megan, I'm sure I share the sentiment of many viewers when I wonder what the timeline is on people being able to walk into a CVS and maybe get a COVID vaccine. I'm hoping if there's anything you're able to share on that with us?

MEGAN CALLAHAN: Yeah, well, as we know, vaccine supply is the question of the day. In March and April, CVS will be standing up these community clinics, mobile vaccine vans in various communities. And I think we'll start to see delivering the vaccine at scale.

- Megan, how far away do you think we are before I place an order for a prescription, it gets sent to a CVS, and they put it in an autonomous vehicle? Even a smaller vehicle, like we've seen a UPS or FedEx test, but that is owned by Lyft, how far away are we?

MEGAN CALLAHAN: Well, autonomous vehicles are not my area of expertise, I will say. But I think we're a bit away from putting prescriptions in autonomous vehicles. I think you may know that Lyft did enter an essential deliveries program at the beginning of COVID back in the spring because there was so much demand, obviously, for food, for medical supplies, other things in the home. And we did launch that program. And we're proud to have done millions of deliveries mostly for food to those in need.

We've done some great partnerships with health plans, Second Harvest Food Bank to support that. But I think we're a little bit away from putting it into autonomous vehicles.

- Megan Callahan, Lyft health care vice president, good to see you. Thanks for taking the time. And good to see what you're working on over there.