CVS Health expects that the number of vaccines vaccinated this year will be less than initially expected, but as the Covid-19 cases climb again, more people are actively seeking the first dose of vaccine.
After seeing the vaccination rate peak in April and decline in May and June, the company lowered its guidance on how many vaccines it is expected to receive in 2021. It is now estimated that a total of 32 to 36 million vaccines will be distributed, which is just a little bit more than the 30 million it has managed. Chief Financial Officer Shawn Guertin said on Wednesday’s earnings conference call that these figures assume a limited number of pediatric vaccines, but no booster injections.
Another signal that the pandemic is not over is that CVS also expects the Covid-19 cost of its insurance business to continue into the second half of the year.
Guertin said: “Overall, we believe that the combined effects of the decline in retail vaccine prospects and slightly higher medical benefits (medical benefit ratios) are now causing the pandemic to have a moderately negative impact on 2021.”
However, there are some signs that more people may line up for vaccination. Guertin said that with the recent increase in Covid-19 cases, he has seen a “re-acceleration” of the first dose of vaccine.
Meanwhile, Walgreens told investors last month that it had injected 28 million doses this year, including 17 million in the most recent quarter.
“I think the key question that many market participants will face as they look forward to next year is whether vaccination will continue until next year, because the base here has already received 28 million vaccinations,” Chief Financial Officer James Kehoe said in a statement . Earnings conference call on July 1. “Will there be a booster vaccination? When will the pediatric department come? There are as many answers as there are questions.”
Both companies saw a slowdown in prescriptions and sales last year, but as more people enter stores or return to doctors for appointments, both companies have recently seen growth. CVS said that compared to last year, sales increased by 13% and pharmacy scripts increased by 14%.
Overall, both CVS and Walgreens have experienced revenue growth in the most recent quarter. CVS brought in $72.6 billion in revenue in the second quarter, an increase of 11% over the previous year. Walgreens reported revenue of $34 billion, an increase of 12%.
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