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  • Express Scripts Trading At A Deep Discount To Fair Value [View article]
    I had pointed out in the article that CVS Caremark has a 12% share of the market.That should be 26% instead. 12% was Medco's market share before its merger with ESRX.
    Oct 10, 2013. 12:03 AM | Likes Like |Link to Comment
  • Express Scripts Trading At A Deep Discount To Fair Value [View article]
    Hi Brendan. I agree that the firm's operating margins are considerably lower than those of its main rival CVS Caremark ( 6.3% Q2 2013). But I wanted to provide the whole picture of where Express Script currently lies.From the chart the margin compression seems to be easing out a bit and might even return to its pre-crisis level of 6.4%, according to Morning Star forecasts.In my risk analysis section, I have pointed out that CVS might decide to get a little aggressive on its pricing and try and wrench market share from ESRX, which it can afford to do given its higher operating margins. But of course such a move would only be a temporary reprieve, and cannot be sustained over the long term.The PMB with a pricing structure that allows the most favorable spread retention will eventually win.
    Oct 9, 2013. 06:01 PM | 1 Like Like |Link to Comment
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