CVS Caremark profit soars 23 percent

CVS Caremark Corp.'s first-quarter earnings jumped 23 percent and topped analyst expectations, as an influx of generic drugs continued to help the drugstore operator and pharmacy benefits manager's profitability.

The Woonsocket, R.I., company said Wednesday a strong flu season, new clients and Medicare prescription drug plans brought more claims to its pharmacy network. But new generic drugs were the main reason its profit climbed.

Generic drugs help drugstore profitability because they provide a wider margin between the cost for the pharmacy to purchase the drugs and the reimbursement received.

- Associated Press

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