Biotech Values

[Titan V]

CVS' $66 billion bid for Aetna makes sense because of threats...
https://www.cnbc.com/2017/10/27/cvs-bid-to-buy-aetna-for-66-billion-makes-sense-analyst-says.html

"CVS has so many threats coming at them," said Ana Gupte, a senior health care services analyst at Leerink Partners. She said one threat in particular is from OptumRx, UnitedHealth Group's pharmacy benefit management business.

PBMs such as Optum and CVS negotiate drug benefits for insurance plans and employers.

Amazon is also "clearly a huge piece of this," Gupte added in a "Squawk Box" interview. The online retail giant has been exploring ways to expand into the drug industry, including selling prescription drugs online.

Gupte says Amazon is thinking hard about its decision, but she added that "all signs" point to Amazon entering into the pharmaceutical industry.

"They may choose to say, 'Hey, should we hurt our brand with all this government scrutiny in an industry and where profit margins are a threat?'" Gupte said. "But, Amazon has always been the leader, and margins will compress, and Amazon is fine with that."

"They're going to disrupt the whole thing like they did for the bookstore industry," she added.