Wednesday, June 10, 2015

Revenue Dynamics for Express Scripts (ESRX)


  • Thanks in part to PBM success, the growth of prescription drug expenditures has slowed to the low- to mid-single digit level, organic growth for ESRX is not likely to be much above this level. 
  • The industry has consolidated, so the opportunity for acquired growth is also limited.
  • The best chance for more rapid revenue growth is through the zero-sum game of poaching another PBM's client.