CVS, Generation Health in genetic research pact

CVS says partnership will help find the most effective drugs based on patients' genes

• On 11:42 am EST, Tuesday November 10, 2009

NEW YORK (AP) -- CVS Caremark Corp. said Tuesday it is planning to do more research on the interactions between a person's genes and the effectiveness of the drugs he or she is taking.

CVS said it is taking a minority stake in "genetic benefit management company" Generation Health Inc. It said the testing will help clients of the Caremark pharmacy benefits management business whose current medications are not working, or are causing unpleasant side effects.

Research on the interaction between genes and medication is called pharmacogenomics, and CVS is hoping it can use information from the testing to determine which drugs will work on which patients. If patients to begin their treatment with drugs that work rather than switching, that reduces medical costs.

Services from the partnership will be introduced to Caremark clients starting in the second quarter of 2010, and the partnership will focus on drugs for cancer, heart disease, HIV and other areas at first. The Woonsocket, R.I., company said it already does some pharmacogenomic testing in its specialty drug business, which focuses on dispensing drugs for chronic and complex illnesses such as diabetes.

Financial terms of the partnership between CVS and Generation Health were not disclosed. CVS Chief Medical Officer Troyen Brennan will join the board of Generation Health, which is based in Upper Saddle River, N.J.

In morning trading, CVS shares fell 48 cents to $30.42.

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