- CVS
- AMZN
For decades, CVS seemed like the perfect business. It was convenient, sold a mix of products people wanted, and everyone was forced to go there (or to one of its rivals) when they needed to pick up a prescription.
Now, however, the company has been fighting a war on many fronts. Consumers can order much of what made the chain convenient for delivery, and various online services, including Amazon, now fill prescriptions.
“At the rear of the store, business at pharmacy counters is being squeezed by stingier drug reimbursement rates and pharmacist wages. In the aisles, sales of everything from greeting cards to cosmetics are feeling the effects of cut-price competition,” according to the Financial Times.
It’s an evolving situation that has caused CVS
It’s an evolving situation that has caused CVS rival Rite Aid to shut down all its stores, while CVS and Walgreens have closed thousands of locations between them.
“The whole drugstore four-wall economic model is collapsing on itself, in my opinion,” said Josh Cummings, a portfolio manager at Janus Henderson Investors, told the Financial Times.
Now, another CVS division has struggled and will be sold by the company as part of a Chapter 11 bankruptcy.
CVS Omnicare winding down
CVS Omnicare, which serves nursing homes, assisted living
CVS Omnicare, which serves nursing homes, assisted living centers, and long-term care and rehab facilities, filed for Chapter 11 bankruptcy in Sept. 2025, according to documents found on PacerMonitor.
Now, the company, which CVS has owned since 2015, has received court approval for its bankruptcy liquidation.
A bankruptcy judge in Texas has approved a wind-down bankruptcy plan by Omnicare after the CVS Health subsidiary sold its business operations for $250 million and reached a $440 million deal with the Justice Department to resolve an improper billing case.
Judge Stacey G. C. Jernigan of the U.S
“Judge Stacey G. C. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas approved Omnicare’s Chapter 11 bankruptcy, noting that it received ‘overwhelming acceptance’ from general unsecured creditors,” Seeking Alpha reported.
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The long-term care pharmacy services provider filed for bankruptcy in September 2025, just months after getting hit with a $949 million judgment for fraudulently dispensing drugs without valid prescriptions to elderly and disabled patients and billing federal government healthcare programs for millions of false claims.
Source: finance.yahoo.com
