CVS Health Corp. (NYSE:CVS) (2.3%) (CVS – $88.99 – NYSE) is the leading pharmacy and pharmacy benefits manager in the country, with over $150 billion in annual revenue. The stock declined in the quarter due to the significant political scrutiny around drug pricing. Efforts to regulate and control drug pricing could have an indirect impact on CVS’s revenues and earnings. However, we believe the company is a low cost provider who already works aggressively to improve health through the dispensing of low cost generic drugs, coordination of care, and efforts to improve adherence by patients.
From Mario Gabelli (Trades, Portfolio)'s Equity Income Fund 3rd quarter 2016 commentary.
