NEW YORK (TheStreet) -- CVS Caremark raised its fiscal 2012 guidance on Wednesday adding to the pressure on
Walgreen to end its standstill with
Express Scripts, according to Gabelli analyst Jeff Jonas.
CVS raised its first quarter and full-year 2012 guidance because it anticipates a gain of 3 cents a share from
Express Scripts' decision to stop covering in-network prescriptions filled at Walgreen at the start of the year. Walgreen said Express Scripts wanted to cut reimbursement rates to below-industry-average cost levels and wanted to unilaterally define its contract terms.
CVS noted in a statement Wednesday that the guidance adjustment "only reflects the potential estimated benefit if the stalemate continues through the end of the first quarter, and does not contemplate any potential benefit beyond the first quarter."
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