By Amina Niasse
NEW YORK (Reuters) -CVS Health is exiting its core infusion services business and plans to either close or sell 29 related regional pharmacies in the coming months, a company spokesperson confirmed to Reuters on Friday.
Details of the strategic shift were announced in a CVS corporate memo dated Oct. 8 and seen by Reuters.
The company on Oct. 8 stopped taking new patients seeking antibiotics, drugs supporting muscular health, and intravenous nutrition services, Shelly Bandit, a senior manager of corporate communications, told Reuters.
CVS bought Coram LLC, a drug infusion services provider, for $2.1 billion in 2013.
"Providers of infused medications have continued to face a challenging environment for their most highly specialized, complex services, and Coram has not been immune to these challenges," Bandit added.
It will continue to provide specialty medications and enteral nutrition, or tube feeding, at pharmacies in Minnesota, Pennsylvania and San Diego, and provide nursing services nationwide.
She said the company has not yet announced any workforce reductions and that any impacted employees would be notified in mid-November with the roles ending in January.
Patients still relying on the targeted therapies will be transferred to other infusion providers, Bandit said.
The move is not related to the company's plan to cut 2,900 corporate jobs.
"We plan to close 29 regional pharmacies over the coming months, but are also exploring a possible sale of these assets," Bandit said.
Reuters reported in September that CVS is exploring a split between its insurance and retail businesses, amid active investor scrutiny. Expecting higher medical costs during the second-half of 2024, the company slashed its earnings forecast in August.
Coram provides on-site infusions, as well as in-home therapies, according to Bandit. Coram's Rhode Island location will also remain open, she said.
CVS shares were flat at $66.91 on Friday afternoon.