Barron's Article 'Mischaracterizes' Express Scripts, Other Pharma Companies: J.P. Morgan

Loading...
Loading...
  • Shares of Express Scripts Holding Company ESRX have been volatile in 2015 and are trading around their January level of $85.
  • JP Morgan’s Lisa C. Gill maintained an Overweight rating on the company.
  • Express Scripts’ patient assistance programs mischaracterized, they are aimed at reducing overall drug costs, Gill stated.

Analyst Lisa C Gill mentioned that a recent a Barron’s article on patient assistance program “mischaracterizes” the type of programs offered by Express Scripts. The article also questions the company’s commitment to cost containment, the analyst added.

“[W]e continue to believe ESRX is aligned with their plan sponsor customers to drive lower overall drug costs,” Gill stated while adding any potential weakness in the company’s shares around this issue will represent a buying opportunity.

The patient assistance programs offered by Express Scripts differ from the ones offered by pharma manufacturers since they are for patients that do not have insurance or those who have exceeded lifetime caps within their plan and can no longer afford the cost of the drugs.

Programs offered by Express Scripts do not bill the plan sponsor but seek alternate financial assistance from disease focused charities or in some cases manufacturer themselves, the analyst pointed out adding there is no conflict of interest.

Terming the concern over PBM-owned specialty pharmacies as “misplaced,” the JP Morgan report mentioned that PBM-owned specialty pharmacies dispense specialty drugs and provide clinical support and other related services to keep patients adherent on therapy.

The specialty pharma services provided by Express Scripts are aimed at slowing the rate of increase of the costs of specialty drugs, the report added.

Loading...
Loading...
Posted In: Analyst ColorLong IdeasReiterationAnalyst RatingsTrading IdeasJP MorganLisa C. Gill
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...