Healthcare Distribution Earnings Preview

JP Morgan has published a research report on Healthcare Technology & Distribution reporting on an earnings preview for 3Q and thoughts heading into the quarter. In the report, JP Morgan writes "In our view, the longer-term fundamentals for the PBM industry continue to remain very strong, as we expect ongoing improvement in profitability per claim metrics on an apples-to-apples basis to be driven by generics (given the significant amount of patent expirations for chronic medications over the next few years) and specialty pharmacy (due to a robust pipeline for new products, coupled with increasing interest from plan sponsors looking for solutions to rein in the costs associated with these drugs). We believe valuations continue to look attractive relative to our earnings growth expectations over the next several years. That said, as is generally the case with the PBM industry, there are few meaningful intra-quarter data releases, which leads to quarterly earnings reports being a key catalyst." Companies related to this report include: Express Scripts ESRX Overweight, price target lowered from $67.00 to $58.50 Medco Health Solutions, Inc. MHS Overweight, price target lowered from $74.00 to $59.00 Henry Schein Inc HSIC Underweight, price target lowered from $63.00 to $59.00 Patterson Companies, Inc. PDCO Neutral price target lowered from $33.00 to $31.00 Animal Health International AHII Neutral