Technical Review on Rite Aid and CVS Caremark: Flu and Generic Introductions Key Threats
by PR Newswire
LONDON, January 23, 2013 /PRNewswire/ --
With the worst flu season in years getting even more intense, companies in the drug stores industry, including CVS Caremark Corporation (NYSE:CVS) and Rite Aid Corporation (NYSE:RAD), are doing what they can to help combat what has now become an epidemic. StockCall analysts have released their latest technical research report on Rite Aid and CVS Caremark which can be downloaded for free at http://www.stockcall.com/signup
Several companies have been working hard to keep up supplies of the vaccine, with Rite Aid recently obtaining over 400,000 additional seasonal flu shots. With more people receiving their shots daily, there is hope that the outbreak will soon subside. Register today to access the free report on Rite Aid at http://www.StockCall.com/RAD012313.pdf
Elsewhere in the industry, companies have had their fair share of challenges dealing with brand-name drug patent expirations and generic introductions. Generics have had a negative effect on top-lines, and in some cases have also crimped margins. Cost-cutting and streamlining initiatives have helped offset some of the declines, and it will be interesting to see how individual companies have performed as earnings season gets into full swing.
December results were mixed for industry players, as almost all companies were negatively affected by generic introductions, while some also lost out due to adverse weather. Rite Aid saw its December same store sales fall 2.2% when compared to the same period last year, as generic introductions and lower front-end sales more than offset a rise in flu-related shots and prescriptions.
CVS Caremark Corp. [Free Report on CVS] , on the other hand, fared better, posting a same store year-over-year December sales increase of 1.8% from its CVS/pharmacy division. The company was ex-dividend yesterday, Tuesday January 22nd, and it is set to release its quarterly readings on February 06th before the market opens.
- CVS Caremark Corporation Technical Analysis [ http://www.StockCall.com/CVSCaremarkCorporation012313.pdf ]
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