CVS Health (CVS) Advances with a Safe Medicines Approach

SVC Health CVS recently completed the rollout of its timed security technology to 213 CVS Pharmacy locations, including Target stores, in three southern US states. It’s part of the company’s goal to support law enforcement, help build safer communities and combat the escalation of organized crime in retail.

This will help deter pharmacy thefts and the diversion of controlled narcotic drugs. As for CVS Health, this will help keep inventory from the company’s stores in pharmacies.

More on the news

The installation of CVS’s timed security technology supports each of these states’ partnerships with local and state law enforcement and the retail community. These safes aim to prevent pharmacy theft and the associated diversion of controlled substance medications by electronically delaying the time it takes for pharmacy employees to open them.

In this regard, controlled substance medications include opioid medications, such as oxycodone and hydrocodone.

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The aforementioned CVS Pharmacy locations will now have a feature that will notify customers of the chain’s timed security technology. According to the announcements, the states and corresponding number of pharmacies include Louisiana (133), Mississippi (57) and Arkansas (23).

A major feature of this timed security feature is that it cannot be overridden and is designed to thwart attempted theft. All CVS Pharmacy locations with this technology display visible signage warning that timed safes are being used to prevent on-demand access to controlled substance narcotics.

CVS Health Medication Safety Approaches

CVS Health first implemented timed security technology in 2015 at CVS pharmacies in Indianapolis, where cases of pharmacy theft were high at that time. With the implementation of timed safes, the company saw a 70% drop in pharmacy burglaries in Indianapolis stores. Since then, the company has introduced timed safes in 32 states nationwide and in the District of Columbia, resulting in a 50% drop in robberies at CVS pharmacies in those local communities.

According to CVS Health, the Time Delay Safe program is one of its multiple initiatives aimed at combating and preventing the misuse and diversion of prescription drugs.

The company currently supports more than 4,300 units for safe drug disposal at CVS pharmacies and through local law enforcement organizations nationwide. These existing drug disposal units have collected over 4 million pounds of unwanted drugs that might otherwise have been diverted, misused, or ended up in the water supply.

Share price performance

Over the past year, CVS Health has surpassed its industry. The stock gained 18.4% against an industry decline of 3.1%.

Zacks Ranking and Key Picks

Currently, CVS Health carries a Zacks Rank #3 (Hold).

A few higher ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAVs and McKesson Corporation MCK.

AMN Healthcare has a long-term earnings growth rate of 3.2%. The company has beaten earnings estimates in the past four quarters, delivering an average 15.7% surprise. It currently sports a Zacks rank #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has outperformed its industry over the past year. The AMN lost 12.8% against a drop of 38.3% for the industry.

ShockWave Medical, currently No. 1 Zacks, has an estimated growth rate of 33.1% for 2023. The company’s earnings have exceeded estimates for the past four quarters, averaging 180.1%.

ShockWave Medical has outperformed its industry over the past year. SWAV gained 31.1% against the industry’s 32.6% drop over the past year.

McKesson has an estimated long-term growth rate of 9.9%. The company has exceeded earnings estimates in the past three quarters and missed one, delivering an average 13% surprise. He currently wears a Zacks Rank #2 (Buy).

McKesson has outperformed its industry over the past year. MCK gained 76% against an industry decline of 14.5%.

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