CVS Names Head of PBM Business - TheStreet

CVS Names Head of PBM Business

CVS names Per Lofberg, co-founder of Generation Health, as chief of its PBM unit.
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(CVS article updated with stock price of CVS, Express Scripts and MedcoHealth.)

WOONSOCKET, RI. (

TheStreet

) --

CVS Caremark

(CVS) - Get Report

selected on Monday the head of

Generation Health

as president of its pharmacy benefits management business.

Per Lofberg will take the reins next month. CVS also upped its minority stake in Generation Health, the genetic benefit management company Lofberg co-founded. Generation Health will be run as a separate business.

Last month, CVS said its PBM business lost a net $4.8 billion in contracts heading into 2010. It also forecast that its operating profit could decline by 10% to 12% next year.

CVS, however, manage to win a $1 billion two-year contract

with a Texas pension fund earlier this month.

Shares of CVS are gaining 4.4% to $32.57 in morning trading. Other PBM companies are also climbing, with

Express Scripts

(ESRX)

up 4.6% to $88.29 and

MedcoHealth

(MHS)

rising 3.3% to $65.15.

-- Reported by Jeanine Poggi in New York.

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