CVS Health’s time as a clinical trial operator comes to a close three years after the company ventured into medical research.
The company started its collaboration with pharmaceutical companies in 2021 and will kick off at the end of 2024. Till today, cvs health Has worked with more than 30 drug manufacturers on 50 Phase II, II and IV studies involving 33,000 participants.
The clinical trials division is not aligned with CVS Health’s long-term strategy, a spokeswoman wrote in an email Monday. The company declined to make an executive available for an interview.
“We will work with our trial sponsors to ensure a smooth transition as well as continuity of care and minimal disruption to patients,” the spokesperson wrote. “We are working to support affected colleagues, and will provide career transition assistance for those unable to find another role within CVS Health.”
cvs health registered a decline of 8.7% $2.1 billion in net income during the first quarter. Revenue rose 11%, but costs related to the acquisitions of Signify Health and Oak Street Health dented quarterly profits, and the company revised down its profit estimates for the full year. Shares of CVS Health opened Monday at $68.58 on the New York Stock Exchange, down 36% from its 52-week high of $107.26 on Aug. 16, 2022.
Duane Wright, senior research analyst at Bloomberg Intelligence, said the clinical trials division did not attract enough customers to CVS Drugstores and that study participation may have been lower than expectations. “The rapport just wasn’t there. CVS does all these other things and doing clinical research probably didn’t fit well with the overall model,” he said.
cvs health made research expedition It ramped up care delivery and COVID-19 vaccination programs and billed it as a way to start testing and make patients more efficient. The company anticipated that its pharmacies and clinics would serve as sources for trial participants, particularly those from underrepresented communities.
Competitors such as Walgreens, Walmart and Kroger also stepped into clinical research after the pandemic began. A spokeswoman said Monday that Walgreens plans to continue to spin off its clinical trials division. Walmart and Kroger did not immediately respond to requests for comment.