BOSTON (CBS) - CVS Health is becoming an even bigger player in the pharmacy industry. Their latest move could be just the beginning in pharmacy consolidation.
CVS Health has taken on Target's pharmacies in a $1.9 billion agreement.
It's a strategic move for the Woonsocket-based CVS, but according to retail analyst Brian Owens from Kantar Retail, customers will do alright too.
"The vast network that CVS has is going to allow the customer to get an even lower price than they do today," Owens said.
"I think it will be because it's going to give access for CVS, more access for their enterprise healthcare network, the Caremark or the pharmacy benefit side of the business. And the ability for CVS to negotiate lower prices for the consumer."
What does the deal do for CVS' Minute Clinic?
"With the acquisition of Target, they're just going to strengthen their foothold in this space," Owens said.
Their target is to have 1,500 clinics in two years.
"We actually think by 2020, they'll be closer to 2000 clinics," he said.
Owens says he thinks Walgreens will try to make a move next, but there's another big player lurking.
"I think the biggest response might be coming from Walmart," Owens said. "Walmart has stated their goal to be one of the biggest healthcare providers in the United States."
Which direction will they go?
"I see them exploring more from an insurance standpoint more in the back end of the pharmacy versus the front end of the store," he says.
But for now, CVS is in the driver's seat.
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