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Pill #5: The Most Expensive Part Of The Pharmaceutical Distribution System

|About: Aetna, Inc. (AET), AMZN, CI, CVS, ESRX

This series highlights some interesting snippets from my 'Stability & Opportunity' research.

A 'pill' is usually something that could easily be taken at face value – and forgotten.

But if it gets metabolized, second-level effects become evident.


Food for thoughts:

Will the net profits currently kept by insurers ($3) and PBMs ($2) simply add up once they merge? (See Cigna (CI) + Express Scripts (ESRX) and CVS (CVS) + Aetna (AET)) 

Why all the buzz about PBMs - if their total cost to the system is only 6%? 

Aren't pharmacies with their 20% share a far more worthwhile target for cost savings / Amazon (AMZN)? Especially considering the following:

Why should the sale of $100 of generic drugs imply a total cost of $32 for pharmacy services?

Disclosure: I am/we are long ESRX.