Walmart Inc (NYSE: WMT) announced
Friday a multi-year agreement to remain in the CVS Health Corp (NYSE: CVS) Caremark pharmacy benefit management program and Managed Medicaid retail
pharmacy network.
The extension ensures ongoing engagement between the companies, who maintain other agreements around the CVS Caremark Medicare
Part D pharmacy network. Walmart’s Sam’s Club also participates in the Caremark networks.
Why It’s Important
CVS management said the renewed partnership “provides enhanced network stability” to its clients. Walmart’s participation keeps
the network at 68,000 pharmacies.
On Walmart’s end, the deal builds on recent affordable healthcare initiatives including the $4 generic drug program.
"We are pleased to have reached fair and equitable terms with CVS Caremark that are in the best interest of our customers, and
we are glad our CVS Caremark customers will be able to continue saving money and living better," Sean Slovenski, senior vice
president of Walmart Health and Wellness, said in a press release.
What’s Next
The firms have not yet disclosed the financial terms of the contract.
At time of publication, Walmart traded up marginally at $97.40, while CVS traded up 2.5 percent at $64.95.
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