CVS’s pharmacy benefit management arm Caremark has lost out on about $4.8bn (£2.9bn) in contract renewals this year.

The retailer warned investors to expect margins to fall by about 10% next financial year as a result. CVS reported a 17.9% year-on-year rise in revenues to $13.6bn (£8.3bn) at its retail pharmacy operation for the third quarter of 2009.

Same store sales for the period increased 5.7% at the pharmacy arm: pharmacy same store sales rose 8.0%, although growth was constrained by recent generic introductions, and non-pharmacy same store sales increased 0.8%.