Humana mulling options for its PBM business


Analysts say Humana (HUM +1.7%) is exploring strategic alternatives for its pharmacy benefit management business including an outright sale which could fetch as much as $7B. The unit is projected to generate ~$15.5B in revenues this year. Options other than a sale include renegotiating the pricing of generic drugs and outsourcing certain operations. Potential buyers may include CVS Caremark (CVS +0.6%), Express Scripts (ESRX +0.4%) and Catamaran (CTRX +1.1%).

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Comments (3)
  • Larry Abrams
    , contributor
    Comments (78) | Send Message
     
    This is an opportunity for FTC Chairwomen Edith Ramirez to rectify her error in approving the anti-competitive Express Scripts - Medco merger in 2012.

     

    She made a rookie mistake back in 2012. Not again. Any buyout will take 2 years to go through this time.
    6 Jun 2014, 01:46 PM Reply Like
  • Ash in Tucson
    , contributor
    Comments (8) | Send Message
     
    I believe a large on line retailer will be considering such a purchase, Amazon and Google to name a couple that are capable. This fits the future prognostications of Wall Street gurus; they are companies with a high brand name recognition so even Granny knows who they are and better yet can find them and lastly they are trusted far more than most American corporations.
    7 Jun 2014, 09:44 AM Reply Like
  • woody256
    , contributor
    Comments (3) | Send Message
     
    Humana DON'T DO IT!!! Express Scripts is a Black Hole that sucks up money and gives crappy service. As with the VA, I wonder how many customers have died waiting for their prescriptions?
    8 Jun 2014, 03:37 AM Reply Like
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