Replies to post #189373 on Biotech Values

[DewDiligence]

PBM consolidation will boost payers’ leverage (duh):

http://www.bloomberg.com/news/articles/2015-03-30/insurer-fight-on-pricey-drugs-to-intensify-after-catamaran-deal

Once UnitedHealth’s $12.8 billion acquisition closes, 75% of prescriptions filled in the U.S. will be in the hands of three players.

OptumRx, UnitedHealth’s drug benefit arm, covers about 30 million people, while Catamaran represents about 35 million. [I.e. the merged UNH-VTRX will cover 65M lives.] That compares with about 90 million people for Express Scripts and more than 65 million for CVS.

[DewDiligence]

CVS buys Target’s Pharmacy business for $1.9B in cash:

http://www.wsj.com/articles/cvs-to-buy-targets-pharmacy-business-for-1-9-billion-1434367874

CVS Health Corp. on Monday said it is paying $1.9 billion to buy and run Target Corp. ’s pharmacies and clinics, giving the drugstore chain about 1,700 more locations to offer its growing health-care services.

As part of the deal, Target’s pharmacies will be rebranded as CVS/pharmacy and operate as separate stores within a store, while Target’s nearly 80 clinics will be changed over to CVS’s MinuteClinic banner.