(Reuters) – CVS Well being Corp reported better-than-expected second-quarter earnings on Wednesday and stated it had begun a restructuring program to chop prices after a latest wave of acquisitions.

The corporate has expanded past medical insurance and pharmacies with its acquisitions of major care supplier Oak Road Well being and residential healthcare companies firm Signify Well being.

CVS Well being, which accomplished the acquisitions earlier this yr, has recognized higher-than-expected transaction and integration prices associated to the offers.

The corporate stated it recorded $496 million in pretax prices associated to a restructuring program it initiated in the course of the quarter to scale back prices.

CVS, which has a big retail pharmacy chain, a well being insurer and a pharmacy profit administration (PBM) unit, stated it will pause acquisitions within the close to time period however might have a look at “extra alternatives” over an extended time period.

Excluding gadgets, the corporate reported earnings of $2.21 per share, above the typical analyst estimate of $2.11 per share, buoyed by the energy of the PBM unit, which negotiates drug costs with producers.

Gross sales in CVS’ well being companies phase, which accommodates the PBM unit, elevated 7.6% to $46.22 billion within the reported quarter in comparison with the prior yr.

(Reporting by Khushi Mandwara and Banvi Satja in Bengaluru; Modifying by Vinay Dwivedi)