Manager’s Amendment Makes No Mention on PBM Excise Tax (ESRX, CVS, MHS)

Goldman Sachs reiterated a Buy rating on Express Scripts Inc. (NASDAQ: ESRX) calling it the top pick of the sector and forecasts a visible 29% 3-year EPS CAGR.

According to Goldman Sachs, the near final version of the health reform bill made no mention of an excise tax on the Pharmacy Benefit Managers (PBM). The firm said that the 'Big 3' PBM stocks lost over $1 billion each in equity value since suggestion of an excise entered the market on December 16. The firm maintains a Buy rating on CVS/Caremark (NYSE: CVS) and a Neutral rating for Medco Health Solutions (NYSE: MHS).