PBMs: Express Scripts stock battered by multi-state probe

Let me tell you my tale of woe over Krispy Kreme, a stock with a big hole in the middle that I was shorting off and on for the past year. I closed out all positions and went on holiday to Turkey and the stock plummeted 30%. And in another from the coulda, woulda, shoulda file — I’ve been more than a little cynical about PBMs in this blog, including as recently as yesterday. I’ve also been looking at ESRX as it traded up into the mid-70s over the past week or so as a potential short sale. Well Thursday 20 state AGs beat me to it and started investigations of Express Scripts — I assume they’d used some of those state bonds they’ve been issuing to go short first. 20 states versus Medco case) being the customers in question. If you haven’t noticed that means all three big PBMs are being sued/investigated for this practice at the same time, which makes me slightly cynical when the PCMA calls its industry "transparent". The stock which was at one point down down about $10 to the low 60s ended down $6.49 at $65 and change.

The allegations are the familiar ones of getting rebates and not passing them on to customers or switching drugs on customers, with presumably the state employees (as in the

Categories: Uncategorized

Tagged as: ,