Express Scripts Cash Reserves Increased to Almost 4 Billion This Year – Pharmacy Benefit Management
Posted Dec 14 2009 12:16pm
With the high prices of drugs we pay for, there’s certainly a ton of money in PBM companies, pharmacy benefit managers who work with your insurers to manage your prescription needs when done through your health plan. PBM’s also work with a ton of Medicare Part D plans too. Reserves are “rainy day” funds that are accumulated and just sit there in case of an emergency, not operating money at all. Health insurers have been criticized in many states too for over packing these funds as well with some states calling investigations as to how much is stock piled. These folks sell our medical information, and I wonder how much revenue is derived from that side of the business.
Just last week, competitor Medco released their 3rd quarter numbers with making just short of 15 billion, not million, billion here. Medco is automated and has very few employees per ratio to the number of prescriptions they handle.
Express Scripts just purchased the Wellpoint Pharmacy Benefit company in the last few weeks as well. I have not heard any updates since September on the extortion problem that made news all last year regarding their security with an individual claiming to hold patients records as ransom and wanting several million to not do this. It was confirmed that they do have the records and the crook picked a company rich in revenue to target it appears. BD
“When business slows down, companies generate an enormous amount of cash,” he said. “Conversely, when business picks up again, companies will need to seek financing to support their expanded working capital requirements.”
Express Scripts increased its cash on hand the most of any local public company this year, from $530.7 million in January to $3.9 billion at the end of September.
The pharmacy benefit management firm is in acquisition mode and recently wrapped up its $4.67 billion purchase of WellPoint Inc.’s NextRx pharmacy subsidiary. “Express Scripts has completed several acquisitions in the last decade, and is well prepared and ready to succeed,” George Paz, chairman and CEO of Express Scripts, said in a Dec. 1 statement announcing the completion of the NextRx deal.