Express Scripts Holding Company (NASDAQ:ESRX)

CAPS Rating: 4 out of 5

Provides pharmacy benefit management services, including retail drug card programs, mail pharmacy services, drug formulary management programs and other clinical management programs for HMOs, health insurers, third-party administrators and employers.


Player Avatar NovaTodd (25.69) Submitted: 3/20/2013 5:04:07 PM : Outperform Start Price: $59.31 ESRX Score: +2.82

I read a very insightful piece on SA regarding ESRX (see below). Accounting for the recent Medco acquisition, Express Scripts now does business with ~95% of retail pharmacies in the U.S., and possesses significant bargaining power in this relationship (see the Walgreens fiasco for evidence of this). They also have about 60% market share in the mail-order prescriptions business, fertile ground for future growth. Favorable demographic shifts, the closing of the "Medicare donut hole" and a recent share repurchase authorization are just a few more reasons this company is a long term winner.

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