CVS focus: integrating recent acqusitions

CHICAGO At the Reuters Health Summit, CVS ceo Thomas Ryan said that the drugstore chain is focused on amalgamate recent acquisitions instead of looking for new stores to purchase.

"It's most important that we stay focused on the integration, the execution and getting our balance sheet in order, and then we will have the opportunity to look at opportunistic acquisitions," he said.

While Ryan said that he does not anticipate that CVS will operate in every state just yet, he does foresee the drugstore chain could eventually open stores in the Pacific Northwest region.

CVS acquired pharmacy benefits manager Caremark in March and is still integrating the Osco and Sav-On drugstores it bought last year from Albertsons Inc.

Ryan also added that the company’s in-store health clinics will remain a key growth driver and, by the end of 2007, CVS will have about 400 MinuteClinics in its stores. CVS’ ceo also said that there are plans to open 300 clinics each year as CVS targets its long-term goal of reaching 2,500 clinics.

Ryan did address that the clinics may have a small shortage of nurse practitioners, but he hasn’t seen any yet.

"Right now, we're the employer of choice because the nurse practitioner, he or she, likes running their own office," he said.

Ryan also restated the retailer’s plans to develop its private label and proprietary brands, which currently account for about 15% of front-end sales.

"We have a goal of growing that to 20% by 2010," he said.