Rhode Island-based pharmacy retail giant
CVS Caremark Corporation
) has signed a definitive agreement to purchase the assets of
Navarro Discount Pharmacy in a strategic attempt to cater to the
large Hispanic market in the U.S. Headquartered in Miami, this
specialty pharmacy is the largest Hispanic-owned drugstore chain in
Navarro's annual sales exceed $340 million on the back of a
strong customer base in the Hispanic and ethnic markets. It is thus
naturally expected that this deal will boost the prospects of CVS
Caremark as a pharmacy innovation company within the fast-growing
Post-acquisition, CVS Caremark will own Navarro's 33 retail
drugstore locations and a specialty pharmacy titled Navarro Health
Services that serves patients suffering from complex or chronic
diseases. However, the acquired stores will continue to operate
under the brand name of Navarro Discount Pharmacy.
The transaction is subject to customary closing conditions,
which includes necessary regulatory approvals. The financial terms
of the agreement, however, have been kept under wraps.
Both CVS Caremark and Navarro are bullish on this collaboration
and expect to jointly improve patient outcome through high quality
pharmacy-care products and services. Apart from traditional drug
store services, Navarro has created a niche market through the sale
of unconventional offerings like wireless phones and designer
fragrances, along with a wide range of over-the-counter drugs and
vitamins. On the back of this partnership, management at CVS
Caremark hopes to gain a strong foothold in this evolving
Currently, CVS Caremark holds a Zacks Rank #2 (Buy). Some other
notable medical stocks that warrant a look are
BioGen Idec Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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