Its core operations will be needed no matter how market dynamics shift.
Profits were pressured in the quarter, but we are reiterating our fair value estimate and no-moat rating for the managed-care organization.
With the Aenta deal nearing, the firm is well positioned for the long term despite quarterly headwinds.
We are reiterating our fair value estimate for the narrow-moat firm.
The Cigna merger is on track, and we are maintaining our $92 fair value estimate and wide moat rating after a solid quarter for Express Scripts.
The pharma distributor has a solid foundation and a bright outlook, in our opinion.
The CVS-Aetna merger deal is significant, creating a powerful new company in the healthcare services company.
The Cigna merger with Express Scripts will create one of the strongest firms in the U.S. healthcare market.
CVS looks undervalued today and has some great competitive advantages.
We are reiterating our positive outlook for the combined company.
We are reiterating our fair value estimate and narrow moat rating for the managed-care firm.
We expect the combined company will fundamentally change how healthcare is provided to individuals.
Disastrous quarter aside, the wide-moat firm remains in a strong long-term position within the U.S. pharmaceutical market.
We think the firm is a powerful player within the pharmaceutical market today and is well-positioned for the long term.
We think investors should exercise caution as the firm’s strategy has yet to bear fruit.
Cigna's purchase of the pharmacy benefit manager underscores the value and critical nature of the PBM business model to the healthcare market.
The wide-moat pharmacy benefits manager is in a solid long-term position given its cost-saving and efficiency services.
A combination of Walgreens and drug distributor AmerisourceBergen would be fraught with valuation and operational challenges, says Morningstar's Vishnu Lekraj.
A vertical integration would benefit the no-moat retail pharmacy more than the wide-moat drug distributor.
Investors are underappreciating the moaty nature of the healthcare supply chain and the formidable competitive advantages that have insulated these firms.
Vishnu Lekraj says healthcare partnerships like the one among Amazon, JP Morgan, and Berkshire have not been very successful in the past.
New competition may seem inevitable, but moats in the pharma supply chain exist for a reason.
The no-moat retail pharmacy is doing an excellent job of offsetting gross profit headwinds by decreasing SG&A as a percentage of sales.
A new CVS/Aetna entity will be a healthcare services behemoth, but we think CVS is overpaying to create it.
We have some concerns, but think a deal would bring operational opportunities.
We are reiterating our $89 fair value estimate and wide moat rating for the healthcare services player.
For now, we’re not changing our valuations or moat ratings for the affected companies.
We think the wide-moat firm has done well balancing innovation with profitability.
Express Scripts and McKesson both have entrenched positions in the pharmaceutical supply chain and are great opportunities for value investors.
We see opportunity with wide-moat McKesson as drug pricing downturns and client contract losses abate.
We like its improving operational dynamics and less uncertain near-term environment.
The retail pharmacy avoids court action by terminating a merger with Rite Aid, and will instead buy about half of its stores.
We're maintaining our fair value estimate as the firm discounts its generic inventory to win business and tries to close the Rite Aid acquisition.
The recent rulings by the two respective federal courts in blocking both the Anthem/Cigna and Aetna/Humana deals have significant repercussions for the sector.
Recent headwinds have pressured healthcare, but we believe Express Scripts and McKesson are well positioned for long-term profitability.
The focus on short-term noise surrounding drug pricing in the U.S. has created an opportunity in this wide-moat name for long-term investors.
The retail pharmacy is pursuing a three-pronged strategy in an attempt to adapt in a rapidly shifting market.
The PBM has unparalleled supplier pricing power and scale advantages.
The wide-moat CRM services provider's niche position in the life sciences vertical allows it to have a significant competitive advantage, as the firm can develop products specifically for areas of unmet customer need.
Cardinal Health, AmerisourceBergen, and McKesson have some of the deepest competitive advantages, and two of them are trading at attractive levels today.
The company's still one of the most powerful players in the pharmaceutical supply chain.
Although revenue issues continue, we think the shares are undervalued.
Consolidation activity in the sector will have a positive impact operationally, but the stocks are overpriced, says Morningstar's Vishnu Lekraj.
The combination should boost long-term economic profitability but Anthem is significantly overpaying for this transaction, writes Morningstar’s Vishnu Lekraj.
Investors can pick up shares of this pharmacy benefit manager, which enjoys enormous supplier-pricing and scale advantages, at a significant discount.
With the addition of Boots Alliance, the firm is now a premier global retail powerhouse.
Given the power and advantages that large PBMs possess along the pharmaceutical supply chain, UnitedHealth’s deal for Catamaran makes complete sense, writes Morningstar’s Vishnu Lekraj.
The wide-moat pharmacy benefit manager is still undervalued.
Walgreen's acquisition of Alliance Boots is positive from a strategic standpoint, but the firm will still lack significant long-term competitive advantages, says Morningstar’s Vishnu Lekraj.
We believe its acquisition strategy puts the PBM on the right course.