- CVS, which owns pharmacies as well as operates a pharmacy benefit manager, saw its stock drop sharply on Thursday when it emerged that Amazon has been approved for wholesale pharmacy licenses for at least 12 states. Then The Wall Street Journal reported that CVS had offered to buy health-insurance company Aetna and the shares rallied. The sudden moves in CVS’ stock price neatly encapsulate a broader shift in corporate America: sit still and risk getting disrupted, or go out and strike a deal.
The chart above says it all.
On Thursday afternoon, Samantha Liss at the St. Louis Post-Dispatch reported that Amazon had been approved for wholesale pharmacy licenses for at least 12 states. The news sent a number of stocks down, including CVS, Walgreens, and Express Scripts.
Less than 90 minutes later, a Wall Street Journal report that CVS has offered to buy health-insurance company Aetna, sending the stock tearing higher.
Corporate America is facing a decision: Go out and do deals to shore up their competitive position, and take their fate in to your own hands, or sit still and risk getting disrupted.