Pharmacy Benefit Managers Poised for a New Bear Market

One sector that has seen tremendous growth & profitability in recent years has been the Pharmacy Benefit Managers (PBM). For a while now, I've been made acutely aware of the tremendous pricing pressure they have been exerting on the pharmaceutical companies (my wife works for a major pharmaceutical company) and while the major PBMs have benefited handsomely from such pricing leverage on the drug companies, all good things eventually must come to an end. Even if the PBMs continue to exert their strong pricing power on the drug companies, the charts are still clearly bearish by nearly all metrics that I [...]

Oct 4, 2016 1:51pm|Categories: Equity Market Analysis|Tags: , , |2 Comments