CVS Completes Acquisition of Target Pharmacies

CVS Health announced Wednesday the completion of its $1.9 billion acquisition of Target Corp.’s pharmacy and clinic businesses. Some 1,670 Target pharmacies and 79 clinics will transition to CVS Health banners and systems in the next six to eight months.“Today’s milestone in our relationship with CVS Health is an important step in driving Target’s strategic priorities forward while giving our guests easy access to industry-leading health care services,” said Brian Cornell, chairman and chief executive officer of Target, in a media release. “With the transition now underway, Target can further accelerate our commitment to wellness as a signature category, helping guests and team members in their efforts to eat better, be more active and find natural and clean label products.” The deal will give Target shoppers access to CVS pharmacy programs that provide medication adherence services and pharmacy care counseling such as Pharmacy Advisor, Specialty Connect and Maintenance Choice, and a low-cost generic drug option. All of the pharmacy locations will also offer CVS's ExtraCare loyalty program following the transition period. A tab on cvs.com and a display ad within target.com promote the acquisition with a “CVS Pharmacy coming soon to Target” message.“We look forward to helping Target guests on their path to better health through CVS Health’s leading clinical programs,” said Larry Merlo, CVS Health president and ceo, in the media release. “In addition, with the Target acquisition we will leverage our unique integrated business model and our scale to drive incremental sales volume and operating profit for the enterprise while providing convenience and cost savings to consumers and payers.” Target officially shut down its Pharmacy Rewards program as of Dec. 1, softening the blow by saying goodbye to members with 5% off coupons. All Target Pharmacy shoppers were automatically moved to CVS Health's network; all pharmacy and clinic staff are now employed by CVS Health and will no longer wear red and khaki.

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