CVS announced Wednesday that it will stop selling cigarettes and other tobacco products at its more than 7,600 pharmacies across the U.S. by Oct. 1, 2014, making CVS the first national pharmacy chain to take this step in support of the health and well-being of its patients and customers. There are three CVS pharmacies in Carson City.
"Carson City Health and Human Services recognizes the health benefits of living a smoke-free lifestyle. CVS's decision to remove tobacco products from their stores could signal an important development for improving public health," said Cortney Bloomer, health educator for Carson City Health and Human Services.
As the delivery of health care evolves with an emphasis on better health outcomes, reducing chronic disease and controlling costs, CVS Caremark is playing an expanded role in providing care through pharmacists and nurse practitioners, said Larry J. Merlo, President and CEO, CVS Caremark.
"Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health," said Merlo. "Put simply, the sale of tobacco products is inconsistent with our purpose."
"The significant action we're taking today by removing tobacco products from our retail shelves further distinguishes us in how we are serving our patients, clients and health care providers and better positions us for continued growth in the evolving health care marketplace," he said.
Smoking is the leading cause of premature disease and death in the United States with more than 480,000 deaths annually. While the prevalence of cigarette smoking has decreased from approximately 42 percent of adults in 1965 to 18 percent today, the rate of reduction in smoking prevalence has stalled in the past decade.
"We applaud CVS's decision to stop selling tobacco products. Lung cancer is the leading cause of cancer deaths in Nevada and 90 percent of our lung cancer cases are caused by smoking," said Cari A. Herington, executive director of the Nevada Cancer Coalition. "We must continue working together to reduce the toll of tobacco on the health of our communities and thank CVS for supporting the health of Nevadans."
Nevada Sen. Harry Reid made the following statement after CVS/pharmacy announced they would no longer sell cigarettes and tobacco products in their stores:
"I commend CVS for their valiant decision to stop the sale of cigarettes and tobacco products in their stores. With thousands of kids trying smoking for the first time every day and nearly half a million Americans dying every year as a result of their smoking or someone else’s, taking these products off the store shelves will save lives. This decision also sends a powerful message, that the profit from the sale of cigarettes does not outweigh its harmful addictive effects. And as CVS put it, the sale of these poisonous products is inconsistent with their purpose of supporting the health of their customers. I thank CVS for setting an example that I hope others will follow."
More interventions, such as reducing the availability of cigarettes, are needed, according to CVS officials.
"CVS Caremark is continually looking for ways to promote health and reduce the burden of disease," said CVS Caremark Chief Medical Officer Troyen A. Brennan, M.D., M.P.H. "Stopping the sale of cigarettes and tobacco will make a significant difference in reducing the chronic illnesses associated with tobacco use."
In a Journal of the American Medical Association (JAMA) Viewpoint published online this morning, Brennan and co-author Steven A. Schroeder, Director, Smoking Cessation Leadership Center, University of California, San Francisco, wrote, "The paradox of cigarette sales in pharmacies has become even more relevant recently, in large part because of changes in the pharmacy industry … Most pharmacy chains are retooling themselves as an integral part of the health care system. They are offering more counseling by pharmacists, an array of wellness products and outreach to clinicians and health care centers….Perhaps more important, pharmacies are moving into the treatment arena, with the advent of retail health clinics. These retail clinics, originally designed to address common acute infections, are gearing up to work with primary care clinicians to assist in treating hypertension, hyperlipidemia and diabetes – all conditions exacerbated by smoking."
CVS will launch a program this spring to include information and treatment on smoking cessation. The program will be available broadly across all CVS/pharmacy and MinuteClinic locations and will offer additional comprehensive programs for CVS Caremark pharmacy benefit management plan members to help them to quit smoking. Approximately 7 in 10 smokers say they want to quit and about half attempt to quit each year.
"Every day, all across the country, customers and patients place their trust in our 26,000 pharmacists and nurse practitioners to serve their health care needs," commented Helena B. Foulkes, President, CVS/pharmacy. "Removing tobacco products from our stores is an important step in helping Americans to quit smoking and get healthy."
The decision to exit the tobacco category does not affect the company's 2014 segment operating profit guidance, 2014 EPS guidance, or the company's five-year financial projections provided at its December 18th Analyst Day.
The company estimates that it will lose approximately $2 billion in revenues on an annual basis from the tobacco shopper, equating to approximately 17 cents per share. Given the anticipated timing for implementation of this change, the impact to 2014 earnings per share is expected to be in the range of 6 to 9 cents per share.
The company has identified incremental opportunities that are expected to offset the profitability impact. This decision more closely aligns the company with its patients, clients and health care providers to improve health outcomes while controlling costs and positions the company for continued growth.