Express Scripts Holding Company
) recently announced that it has acquired the SmartD Medicare
Prescription Drug Plan (PDP).
The move is expected to add approximately 87,000 customers
which are covered by the plan. Other terms of the deal were not
The deal will broaden Express Scripts' customer base.
We note that Express Scripts is the one of the largest
pharmacy benefit manager (PBM) in North America.
PBM services provided by Express Scripts include retail
network pharmacy management in the domestic market and Canada,
retail drug card programs, home delivery services, benefit design
consultation, drug formulary management programs, Medicare Part D
and Medicaid products etc.
We remind investors that Express Scripts has been actively
pursuing deals and acquisitions to drive growth.
In Apr 2012, Express Scripts acquired healthcare company Medco
Health Solutions for $29.1 billion and targeted $1 billion of
synergies from the acquisition. The company has combined the best
of each organization and more than 75% of the clients are on the
best suited platform.
Express Scripts stands to benefit from increased generic
utilization, shift toward mail orders, strong specialty growth
and an aging population.
We note that Express Scripts' second quarter results beat
expectations. We are also encouraged by the subsequent increase
in guidance. However, the introduction of insurance exchanges,
additional costly regulations, escalation of brand drug prices
and increased specialty drug utilization loom large on the
company's business in the long run.
Currently, Express Scripts carries a Zacks Rank #2 (Buy).
Other stocks which look attractive include
PAREXEL International Corp.
ICON Public Limited Co.
). All three carry a Zacks Rank #2.
EXPRESS SCRIPTS (ESRX): Free Stock Analysis
ICON PLC (ICLR): Free Stock Analysis Report
OMNICARE INC (OCR): Free Stock Analysis
PAREXEL INTL CP (PRXL): Free Stock Analysis
To read this article on Zacks.com click here.