ESRX up on analyst note and AG job change...
17 Sep 13:57
In a press release issued Friday, the U.S. Attorney said Sheehan's new job
would allow him to focus on issues other than health carefraud, such as
predatory lending and nursing home care.
Sheehan has been investigating the deals that pharmacy benefits managers have
inked with drug developers in return for steering patients to certain
prescription drugs. Sheehan isn't the only one calling these tactics into
question, senators have indicated that they will call hearings on PBM practices
in the fall.
Investors seem to see a benefit to PBMs from Sheehan's job change. AdvancePCS
shares have risen more than 9% since Thursday, including 84 cents, or 3.8%, to
$23.20 on Tuesday. A spokesperson from the company was unavailable for
comment.
Other PBMs possibly seeing a boost from the SG Cowen note Tuesday include
Caremark Rx (CMX), which the firm rates a strong buy, and Express Scripts
(ESRX), rated at outperform. Caremark shares are up 52 cents, or 3.1%, to
$17.47, while Express Scripts is gaining 74 cents, or 1.4%, to $55.06.
A Caremark spokesperson would not comment on the situation, saying the
company had nothing to do with Sheehan's investigation, while an Express
Scripts official was unavailable for comment.
Shares of Merck & Co. (MRK), whose Medco unit was being investigated by
Sheehan, are down 49 cents, or 1%, to $48.32. A spokesperson was unavailable
for comment.
(END) DOW JONES NEWS 09-17-02
01:57 PM |
