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CVS, Walgreens say drug price hikes slowing

It may not feel that way to patients, but the meteoric rise in prices for drugs has slowed, affecting pharmacy revenues for both CVS and Walgreens.

By Marlene Y. Satter | Updated on January 05, 2018
According to CVS finance chief Dave Denton, although the present ding to the company’s bottom line comes from generics, in the long run they could actually be more profitable. (Photo: Shutterstock)

It may not feel that way to patients, but the meteoric rise in prices for drugs has slowed, causing both CVS Health and Walgreens Boots Alliance to report that pharmacy revenues are suffering as brand-name drug prices have come under pressure—both from generic substitutes and from slowing price inflation.

The Wall Street Journal reports that CVS, at least, isn’t terribly worried about the slowing prices. According to CVS finance chief Dave Denton, although the present ding to the company’s bottom line comes from the generics, in the long run they could actually be more profitable since they have a higher profit margin than name-brand medications.

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