UPDATE 1-CVS still sees rivals' resolved spat boosting profit
July 19 |
July 19 (Reuters) - CVS Caremark Corp said business it had gained from the impasse between rivals Walgreen Co and Express Scripts Holding Co, which was resolved on Thursday, should add about 5 cents per share to its profit in the second half of the year.
Walgreen, the largest U.S. drugstore chain, stopped filling prescriptions for Express Scripts patients at the end of 2011 after the companies were unable to agree on contract terms. Sales at CVS, the No. 2 chain, rose as a result.
On Thursday, Walgreen and Express Scripts said Walgreen would be part of Express Scripts' broad retail network starting on Sept. 15.
Now that its rivals reached a resolution, CVS said it expected to retain at least 50 percent of the business it gained.
Previously, CVS only included the benefit it anticipated from the spat through the end of the second quarter. In May, it forecast a full-year profit of $3.23 to $3.33 per share.
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