Express Scripts Holding Company (ESRX) & Seven States Wasting the Most Money on Medications

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Perhaps the best-equipped company to do so is none other than Express Scripts Holding Company (NASDAQ:ESRX) itself. It’s the largest pharmacy benefit manager, or PBM, in the country with extensive research capabilities to identify the most effective ways to tackle this wasteful spending. Express Scripts Holding Company (NASDAQ:ESRX) isn’t the only strong player, though.

CVS Caremark Corporation (NYSE:CVS) operates pharmacies across the U.S. but also stands as the second-largest PBM. The company boasts a strong mail delivery business, which is an important advantage in addressing waste related to patients not using the most cost-effective pharmacies.

UnitedHealth Group Inc. (NYSE:UNH) isn’t just the largest managed care organization in the nation. The company also runs the No. 3 PBM with its OptumRx unit. This presents a dual opportunity for UnitedHealth Group Inc. (NYSE:UNH). It can educate insured members as well as influence patients to spend more wisely through its PBM business.

Another pure-play PBM is Catamaran Corp (USA) (NASDAQ:CTRX). The fourth-largest PBM has been very successful in promoting use of generic alternatives to higher-cost prescription drugs. Catamaran Corp (USA) (NASDAQ:CTRX) should see success in picking off business from smaller PBMs.

I actually think that investors wouldn’t go wrong with any or all of these stocks. However, my favorite is Express Scripts Holding Company (NASDAQ:ESRX). I think the company’s scale gives it a considerable advantage. That’s an edge that you can bet won’t be wasted.

The article 7 States Wasting the Most Money on Medications originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Catamaran, Express Scripts, and UnitedHealth Group. The Motley Fool owns shares of Catamaran and Express Scripts.

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