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CVS Health Launches Reduced Rx for Affordable Medication

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CVS Health Corporation CVS, a leading name in pharmacy benefit and retail pharmacy, recently announced the launch of a prescription savings program – Reduced Rx. The main aim of this initiative is to offer discounts on certain medications directly to patients through the company’s pharmacy benefits manager, CVS Caremark. This will help patients with high out-of-pocket costs afford essential medications.

The company has tied up with Novo Nordisk for this program to offer Novolin R, Novolin N and Novolin 70/3 human insulin at $25 per 10ml vial. Reduced Rx will allow diabetic patients to purchase cheaper medications at any of its pharmacies in the CVS Caremark retail network. With almost 10% of the U.S. population dealing with diabetes, the company has been trying to cut insulin rates for such patients.

Over the recent past, the company has been working on several affordability schemes, one of the recent schemes being with Impax Laboratories. CVS Health has developed the authorized generic for Adrenaclick, an epinephrine auto-injector for patients with allergic reactions, available at all CVS Pharmacy locations at the lowest price.

CVS Health Corporation Price

CVS Health Corporation Price | CVS Health Corporation Quote

Following the initial offering with Novo Nordisk, CVS Health plans to extend the Reduced Rx prescription savings program to other medications and address other conditions.

In this regard we note that CVS Health has been performing better than the Zacks categorized Retail - Pharmacies and Drug Stores industry over the last one month. The stock has lost 0.2% over the time frame, narrower than the broader industry’s decline of 0.9%. Thus, we expect CVS Health’s affordable programs would boost the company’s share price in the near future.

Rising drug prices is a major concern for U.S. citizens. As per a CBS New report, Prescription drug costs for Americans under 65 years of age are projected to jump 11.6% in 2017. The nation is currently reeling under uncertainties pertaining to affordable health care and drug price policies.

CVS Health has thus collaborated to create both the generic Adrenaclick and the Reduced Rx program in response to the affordability challenges patients face in certain health plans.

Zacks Rank &Key Picks

CVS Health currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product sector are Inogen, Inc. INGN, Bovie Medical Corporation BVX and ResMed, Inc. RMD. Inogen sports a Zacks Rank #1 (Strong Buy) while the other two companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen gained 81.7% in the last one year in comparison to the S&P 500’s gain of 16.2%. The company has a stellar four-quarter average earnings surprise of over 49.08%.

Bovie Medical surged 57.7% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 28.7%.

ResMed gained over 26.5% in the past one year, better than the S&P 500 mark. It also has a trailing average earnings surprise of 0.31%.

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