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Invest Long Term With Express Scripts Holding Company

356px-Express_Scripts_logo.svgWhen an investor considers that 10,000 baby boomers (those born between 1946 -1964) in the United States are retiring everyday, it makes sense to invest in Express Scripts Holding Company. This pharmaceutical company can provide prescription management and home delivery of a variety of medicines, that older Americans will most likely need in the years ahead.Fortune_g500_cover06

Express Scripts Holding Company became a fortune 500 company in 2013. This healthcare company is the largest pharmacy benefit management (PBM) organization and the 20th largest corporation in the United States. Revenue for the company was $104.62 billion USD (United States Dollar) in 2013. Net income stood at $1.845 billion USD. As of 2012 the company employed 30,215 individuals worldwide.

140px-United_States_Department_of_Defense_Seal.svgOne of the largest clients of the company is the United States Department of Defense through the Tricare Program of medicine and healthcare.

The company was founded in St. Louis, Missouri. The company has seen spectacular growth since its original inception in 1986. It was purchased by New York Life Insurance Company in 1989 and became a publicly traded company in 1992.

Subsidiaries of the company include Accredo, Curascript and UBC.

Skyline Of St. Louis

Skyline Of St. Louis

Express Script Holding Company common stock closed at $70.50 USD on August 06th. The stock was up 0.07 for the day an increase of 0.10%. The high for the day was $70.75 USD and the low $70.21 USD. Market capitalization stands at $52.5 billion USD and the P/E ratio (ttm) is 31.06.

Total volume traded was 4,938,300. The average volume for the last 30 days is 5,227,645. The 52 week low is $59.20 USD and the high was achieved in March of this year at $79.37 USD. Earnings per share are $3.1294 USD.

Express Scripts Holding Company business model is to align its interests with those of clients and patients. That is the company makes money when their customers save money. This is accomplished through the use of generic drugs and lower cost drugs. Along with using the company’s efficient and low cost Home Delivery service it can be a substantial savings for clients and patients alike.

220px-12-08-18-tilidin-retardThe company handles more than one million prescriptions every day. This is done through networks of retail pharmacies and the home delivery system. There are tens of millions of customers on the receiving end. This guarantees the company a steady source of income for both the short and long term. The unique position of Express Scripts between pharmacies and health care plans allows the company to see and fill 1.4 billion prescriptions a year. The company uses this information as part of their research data. It allows the company to create better solutions for their clients and patients.

Express Scripts Holding Company client list include employers, governmental health programs, health maintenance organizations, health insurers, third party administrators, union sponsored benefit plans, and workers compensation.

Government Healthcare

Government Healthcare

The company actually coordinates the distribution of outpatient pharmaceuticals through a combination of benefit management services. This would include in addition to home delivery, retail drug card programs and clinical and health management programs.

The company also distributes a full range of injectible bio-pharmaceutical products directly to physicians and patients. The objective is to provide patient care services through extensive cost management.

The company has grown over the years through corporate acquisition and partnership agreements. There has been a number of stock splits that have taken place as well. These occurred as a two for one split in the years 1994, 1998, 2001, 2005, 2007, and 2010.

New York Presbyterian Hospital. One Of The Busiest In The Nation

New York Presbyterian Hospital One Of The Busiest In The Nation

Growth for the company was enhanced by the establishment of ESI Canada in 1996. This was followed by the acquisition of ValueRX from Colombia/HCA in 1998. In 1999,the company acquired Diversified Pharmaceutical Services from SmithKline Beecham.

In 2000 Express Scripts Holding Company became the first major PBM for the Medicaid Program.

A joint venture with RXHub was fulfilled in 2001. In 2002 the company acquired NPA , a privately held PBM. The acquisition of CuraScript Specialty Pharmacy would follow in 2004. After a brief respite ConnectYourCare was bought in 2007.

In 2008 Express Scripts was able to complete the purchase of the Pharmacy Services Division of Medical Services Company (MSC). Next on the list was buying WellPoint’s NextRx Subsidiaries in 2009. The final acquisition occurred in 2012 with the take over of Medco Health Solutions, Inc.

The only two blemishes on the corporation were the fraud allegations in 2004. The case involved a suit filed by New York State alleging that the company has kept drug rebates due to the state. The case involved tens of millions of dollars. The lawsuit also claimed that Express Scripts had overstated cost benefits for certain medications. The case was settled in 2008 for 9.3 million USD. A total of 29 states received a settlement and the company agreed to change their business practices. The company also agreed to pay up to $200,000 USD in reimbursement to patients.

A consumer class action lawsuit was brought against the company in 2008. Express Scripts was accused of negligence in protecting customer records. The case was later dismissed because the plaintiff was unable to prove standing in the case.

Health Care Clinic

Health Care Clinic

The long term growth for the Express Scripts Holding Company looks excellent given the present demographics in the United States. It is expected that corporate acquisitions will continue to allow the company to grow market share.

It is important to note that regulators may hinder some of these purchases as the company gains a greater total market share of the pharmaceutical business in the United States. This will encourage more partnerships and joint ventures where outright acquisitions are not permissible.

Express Scripts is a company that an investor will want to purchase and possibly hold for the longer term.

 

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