A Bitter Pill for Pharmacy Benefit Companies

UBS Financial thinks the news that First DataBank is lowering average wholesale prices for more than 2,000 drugs could hurt earnings for Express Scripts, Caremark Rx, and Medco

Pharmacy benefit managers got hit on Oct. 9 after UBS Financial downgraded Express Scripts (ESRX), Caremark Rx (CMX), and Medco Health Solutions (MHS) to neutral from buy. This was related to the Oct. 6 news that First DataBank, a publisher of prescription drug prices, agreed to lower prices on its list.

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