Written by Amina Niasse
NEW YORK (Reuters) – CVS Health is exiting its core infusion services business and plans to either close or sell 29 related regional pharmacies in the coming months, a company spokesman confirmed to Reuters on Friday.
Details of the strategic shift were announced in a CVS memo dated Oct. 8 and seen by Reuters.
Shelly Pandit, the company’s director of communications, told Reuters that on October 8, the company stopped accepting new patients seeking antibiotics, medications to support muscle health, and intravenous nutrition services.
CVS bought Coram LLC, a provider of drug infusion services, for $2.1 billion in 2013.
“Injectable medicine providers continue to face a challenging environment for their more specialized and complex services, and Coram has not been immune to these challenges,” Pandit added.
It will continue to provide specialty medications and enteral nutrition, or tube feeding, at pharmacies in Minnesota, Pennsylvania and San Diego, and provide nursing services nationwide.
She said the company had not yet announced any workforce reductions and that any affected employees would be notified in mid-November with roles ending in January.
Patients who are still dependent on targeted therapies will be transferred to other infusion providers, Pandit said.
This move is not related to the company’s plan to eliminate 2,900 jobs in the company.
“We plan to close 29 regional pharmacies over the coming months, but we are also exploring the possibility of selling these assets,” Pandit said.
Reuters reported in September that CVS was exploring a split between its insurance and retail businesses, amid active scrutiny by investors. Anticipating higher medical costs during the second half of 2024, the company lowered its earnings forecast in August.
Coram provides on-site injections, as well as home treatments, according to Pandit. Coram’s Rhode Island location will also remain open, she said.
CVS shares settled at $66.91 Friday afternoon.