CVS Pharmacy ceases to promote one of the major causes of death in the U.S.: Tobacco.
Source: The Wall Street JournalPublished: Feb. 5, 2014By: Timothy W. Martin And Mike Esterl CVS said it would stop selling all cigarettes and tobacco products nationwide by October, saying they have no place in a drugstore company that is trying to become more of a health-care provider. Mike Esterl joins MoneyBeat. Photo: AP. CVS, the nation's second-largest pharmacy chain, said Wednesday that it would stop selling all cigarettes and tobacco products nationwide by October, saying they have no place in a drugstore company that is trying to become more of a health-care provider. The move is a bold and expensive one for CVS, a unit of Woonsocket, R.I.-based CVS Caremark Corp. CVS -1.01% It reflects a major push by retail pharmacies away from simply dispensing drugs toward a more integrated role of providing basic health services to Americans—including millions of newly insured—amid an expected shortage of primary care doctors. The news is another blow to the $100 billion tobacco industry that is wrestling with slumping sales, rising taxes, widening smoking bans and a resurgence of public information campaigns highlighting the perils of smoking. For CVS, the move will be costly. The drugstore chain estimates it will lose $2 billion in annual revenue from tobacco and other sundries as a result, which amounts to about six to nine cents a share this year and about 17 cents annually from next year on. CVS, with annual revenue of more than $123 billion, projects its 2014 earnings will be $4.36 to $4.50 a share. But [...]