Shares of Express Scripts, the nation’s No. 1 pharmacy benefit manager, fell Monday morning after Raymond James analysts downgraded the stock to “underperform” from “market perform.”
The brokerage cited Express Scripts’ vulnerability to “escalating competitive pressures.”
The risk for the north St. Louis County-based company has heightened given its “pure play” PBM model, high profit per claim, and exposure to “at-risk” contracts coming up for bid, excluding Anthem Inc., Raymond James said.
Shares of PBMs all were affected after CNBC reported on Friday that Amazon.com is in the final stages of figuring out its strategy to get into prescription drug market.
Read more: St. Louis Post-Dispatch