Following CVS Health‘s (NYSE:CVS) announcement that it is still considering potential M&A in the primary healthcare sector, Cano Health (NYSE:CANO) saw a 15% increase. Humana (NYSE:HUM) says that the company is thinking about making in-market acquisitions and combining them with its existing primary care facilities. CVS stock was trading up.
On the Q3 earnings call, CVS management said that the company is still looking into possible mergers and acquisitions in the primary care sector. The remarks were made by Humana CEO Bruce Broussard in the business’ Q3 financial report.
On the call, CVS CEO Karen Lynch said, “We will continue to explore our options in primary care, and as I mentioned, we feel that we need to pursue M&A, and we will continue to evaluate those options in the marketplace.”
But another CVS official said that, at the company’s current price, M&A deals are probably less profitable than buying back shares. The CVS CEO added, “Having said that, we could choose to use the balance sheet capacity that we still have even after these elevated levels of share repurchase.”
Developments behind CVS stock
The remarks follow a story from last month that said CVS (NYSE:CVS) had terminated negotiations to purchase Cano Health (CANO). In a story that appeared in Bloomberg last month, CVS Health (CVS) was said to be in negotiations to buy Cano Health. On the conference call, CVS didn’t particularly address the rumors surrounding Cano Health (CANO).
Humana (NYSE:HUM), which is also said to be interested in a Cano (NYSE:CANO) transaction, is currently working on its Q3 results call. Wednesday morning saw advances for CVS Health (NYSE:CVS) following an increase in outlook despite Q3 losses due to opioid costs.
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Author Jowi Kwasu 
