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WOONSOCKET, R.I. - CVS Pharmacy, a prominent player in the Healthcare Providers & Services industry with a market capitalization of $101 billion, has completed its acquisition of select Rite Aid assets nationwide, the company announced Wednesday. The transaction includes 63 former Rite Aid and Bartell Drugs stores in Idaho, Oregon and Washington, along with prescription files from 626 pharmacies across 15 states. According to InvestingPro analysis, CVS’s stock is currently trading below its Fair Value, suggesting potential upside for investors.
The acquisition, which concluded on September 30, brings more than nine million former Rite Aid and Bartell Drugs patients to CVS Pharmacy. The company, which generated $384.3 billion in revenue over the last twelve months, has hired over 3,500 former Rite Aid and Bartell Drug employees to support the transition.
"We’re helping maintain and expand access to convenient and trusted pharmacy care across the U.S. and growing our retail footprint and presence in local communities," said Len Shankman, Executive Vice President and President, Pharmacy and Consumer Wellness at CVS Health.
The U.S. Bankruptcy Court for the District of New Jersey approved the sale of the Rite Aid assets to CVS Pharmacy in May. The entire acquisition process took less than four months to complete.
CVS Pharmacy stated that proximity to existing Rite Aid locations was a key consideration in its purchase decisions. Most CVS locations that received prescription files are within three miles of a former Rite Aid store, with nearly half situated within one mile.
The company plans to continue offering many local brands previously carried by Rite Aid and Bartell Drugs. Grand opening events at newly converted stores in the Pacific Northwest are scheduled throughout October.
According to the company’s press release statement, CVS Health operates approximately 9,000 retail pharmacy locations and more than 1,000 walk-in and primary care medical clinics as of June 30, 2025. The company’s stock has shown remarkable performance, with an 83.5% return year-to-date. For detailed analysis and additional insights, including 8 more exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, CVS Health has been in the spotlight due to several significant developments. Cantor Fitzgerald has maintained its Overweight rating on CVS Health, with a price target of $78.00, emphasizing the company’s strong performance in Medicare Advantage Star ratings. Despite this positive outlook, CVS Health faces challenges as its subsidiary, Omnicare, filed for bankruptcy following a $949 million judgment related to improper prescription drug dispensing. The bankruptcy filing lists assets of at least $100 million and liabilities between $1 billion and $10 billion.
Additionally, CVS Health is experiencing competitive pressure from Amazon, which announced plans to expand its pharmacy services by filling prescriptions at electronic kiosks in its One Medical facilities. This expansion could impact CVS Health’s market share in the pharmacy sector. Meanwhile, Cantor Fitzgerald also noted CVS Health’s exposure to Medicaid disenrollment trends in Arizona, which could negatively affect the company alongside other health insurers like Molina Healthcare and UnitedHealth Group. These recent developments highlight the complex landscape CVS Health navigates in the healthcare industry.
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