FTC lawsuit ‘latest mischaracterization’ of PBM group, says JPMorgan

JPMorgan says the Federal Trade Commission lawsuit against the three largest prescription drug benefit managers – CVS Health’s (CVS) Caremark Rx, Cigna’s (CI) Express Scripts and UnitedHealth’s (UNH) OptumRx – is the “latest mischaracterization” of the pharmacy benefit manager industry. There remains a “pervasive negative sentiment clouding the group,” the analyst tells investors in a research note. The firm says the FTC’s press release misses the fact that pharmacy benefit managers don’t set prices and only make recommendations for both formulary inclusion and plan design. JPMorgan points out that while PBM profits are up in recent years, much of this is driven by script volume. The lawsuit does not change the firm’s belief in the PBM value proposition.