Список проголосовавших за комментарий " Express Scripts: Analyst color and conference call notes following ANTM news, earnings (67.25)<ul><li><strong>Analyst color on news/earnings:</strong><ul><li>Maxim recommends that investors buy shares of ESRX following relatively inline 1Q17 results and increased 2017 guidance, particularly as the shares are likely to open sharply lower on the news about its relationship with Anthem (ANTM). Although ESRX announced that it does not expect to renew its contract with Anthem, the current contract, which runs through December 31, 2019, will not be affected. The Anthem business contributed 31% of total EBITDA in 2016. However, the firm believes that in the early years of the contract, which began in 2009, the business contributed significantly less EBITDA. They believe ESRX initially paid $4.7B for the contract because it expected returns to ramp up significantly in the later years. Moreover, they did not expect a potential new contract with Anthem to be on as favorable terms as the existing deal.</li><li>As mentioned earlier, Mizuho cut their ESRX target to $61 from $76 following the ANTM news, noting they estimate the impact of losing ANTM could contribute up to 37% of 2017E adjusted EPS, or $2,61, significantly higher than their previous estimates.</li></ul></li><li><strong>ESRX mgmt is currently holding a conference call to discuss the news and earnings. Notes from call: </strong><ul><li>Does not have $3bln in savings to give Anthem pricing concessions.</li><li>Anthem is forgoing additional price concessions with each day and the annual relief rate of $3bln cannot be offered.</li><li>It took 3 years to bring Anthem on, with or w/out Anthem the co is collectively positioned for a good future.</li><li>Co is the only PBM that can provide rate relief to Anthem by 2020, frankly surprised Anthem is not interested.</li><li>Mgmt says «We are moving on, that's the message you should get today.»</li><li>Initiatives to increase efficiency, further automation, to transform co and what the co offers patients and clients.</li><li>2018 retention rate is expected to be 98%.</li><li>Expects growth for core PBM to ramp up through the remainder of the year.</li><li>From FY17-20 CAGR of 2-4% from core PBM.</li><li>Continues to search for strategic acquisitions to advance core.</li><li>Anticipates that they will add materially to their client base over the next few years.</li><li>Will deploy cash carefully, will be thoughtful about how the invest in themselves, will look at M&A.</li><li>Says buying stock back may not be a bad use of cash.</li></ul></li><li><strong>ESRX shares are currently -13% at $58.23 in the pre-market.</strong> PBM competitors <strong>CVS</strong> and <strong>HUM</strong> are +2.4%.</li></ul>"