- CVS Health CEO Karen Lynch said the company will continue to look for additional assets, including primary care capabilities.
- Lynch made the comments at the JPMorgan Healthcare conference in San Francisco. Lynch expects that the acquisition of Signify Health ( SGFY ) will close in the first half of this year.
- The comments come after a report late Monday that CVS ( NYSE: CVS ) is exploring a $10 billion purchase of the primary care center operator Oak Street Health ( NYSE: OSH ). Oak Street shares surged almost 30% on the report. A deal may happen within weeks and could be valued at $10 billion, including debt.
- A potential CVS Health ( CVS ) purchase of Oak Street Heath ( OSH ) would likely me "modestly dilutive" to 2024 EPS, Cowen analyst Charless Rhyee wrote in a note earlier. A purchase of Oak Street could be up to 2% dilutive to Cowen's 2024 adj. EPS, according to Rhyee, who has an outperform and $118 price target on CVS.
- CVS ( CVS ) shares fell 0.7%.
- Developing story ...
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CVS CEO says still looking to build its primary care capabilities