Always appreciate the annual massive insider selling by Express active company management. It used to be at ESRX that you held onto your stock & options until you left the company because it was generally a good investment over time and it would be so embarrassing to see all the executives lining up to cash in right after a quarterly report where they claim the future is bright and they are more committed than ever. They are ALL sellers. Look at the transactions, and decide why you want to be on the other side of the trade with company management selling so hard.
He should be axed for lots of reasons, but squeezing biopharma on price is what his clients expect him to do. GILD also needs ESRX, the largest PBM in the US to at least keep a level playing field. Likely posturing miscalculations on both sides, but both come out fine in the end -there's just so damn much money flying around.
It looks like ESI is going to be in a difficult position being the only PBM that has excluded Sovaldi from it's national formulary. This means a lot of their clients will have to go on custom formularies to cover it or ESI will have to backtrack and add it back onto the national formulary - which they won't. Either way, the PBM that can least afford more damage to their reputation, integrity and credibility is likely about to get another heavy dose as the independence of their medical advisory function (which they claim drives formulary decisions), arrived at a completely different conclusion than every other prescription insurer with regard to the importance of covering this medication.
Decent earnings have hidden a lot of sins in St. Louis, but ESI runs a careful balancing act that's becoming increasingly more difficult.