Zacks Analyst Blog Highlights: Catalyst Health Solutions, Jefferies Group, CVS Caremark, Medco Health Solutions and Express Scripts - Press Releases

For Immediate Release

Chicago, IL – September 15, 2010 – Zacks.com Analyst Blog features: Catalyst Health Solutions Inc. (CHSI), Jefferies Group Inc. (JEF), CVS Caremark Corporation (CVS), Medco Health Solutions Inc. (MHS), and Express Scripts Inc. (ESRX).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday's Analyst Blog:

Catalyst Acquires FutureScripts

Expanding its pharmacy benefit management (PBM) solutions, on Monday, B>Catalyst Health Solutions Inc. (CHSI) announced the purchase of all the PBM units of Independence Blue Cross (IBC) - FutureScripts LLC and FutureScripts Secure LLC - for an all cash transaction of $225 million. Both the entities have also received the regulatory approvals relevant for the deal.

According to the terms laid, IBC has agreed to allow Catalyst Health to manage the former's PBM service operations for a new 10-year term period. Moreover, IBC has included the future tax benefit for Catalyst Health in the deal value, based on the arrangement of the transaction. On August 4, both Catalyst Health and IBC had agreed on the terms of the deal.

While Jefferies & Company Inc. of B>Jefferies Group Inc. (JEF) acted as the financial advisor to Catalyst Health for the acquisition, Cain Brothers & Company LLC served as financial advisor to IBC.

With healthcare cost inflation easily exceeding the overall level of inflation, employers and government agencies are looking for ways to control expenditures. These employers and government agencies look to PBMs like Catalyst Health Solutions to help solve this problem. Through its PBM business, Catalyst Health helps to control its clients spending on prescription drugs, which is one of the fastest growing components of healthcare costs. Besides, the aging U.S. population, driving higher drug utilization rates should continue to increase the demand for prescription drugs.

Hence, the decision of acquiring a long-term PBM contract from IBC appears to be a judicious step for Catalyst Health at the moment. The company's Catalyst Rx PBM business is already benefiting from industry trends. Besides, FutureScripts provides PBM services to about 1 million members and manages over 14 million of annual prescriptions. We believe that Catalyst Health -IBC's FutureScripts' combination can blend well to deliver integrated health care solutions at optimum costs.

However, the PBM industry, in which Catalyst Health operates is highly competitive and dominated by large players such as CVS Caremark Corporation (CVS), Medco Health Solutions Inc. (MHS), and Express Scripts Inc. (ESRX), possessing significant resources, purchasing power and other competitive advantages, compared with Catalyst Health.

Overall, while we are pleased with the company's wide product base, we remain concerned about the intense competition that Catalyst Health has to face for gaining contracts in the industry in future.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

 

 

 
CATALYST HEALTH (CHSI): Free Stock Analysis Report
 
CVS CAREMARK CP (CVS): Free Stock Analysis Report
 
EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report
 
JEFFERIES GP-NW (JEF): Free Stock Analysis Report
 
MEDCO HLTH SOL (MHS): Free Stock Analysis Report
 
Zacks Investment Research