Looks like I was onto something on September 1 when I wrote... It's rare you see something this big get this disrupted this fast – and almost entirely by word-of-mouth... I’ve been tilting against what I call “the legal drug cartel” of pharmacy benefit managers, or PBMs for years, including
Interesting development ... but raises new question.
Can CostPlusDrugs compete with CVS? Why would you want to?
Footnote: PBMs are easy targets - but for every $100 we spend on prescription drugs - about $5 goes to PBMs (generic/brand combined) - and their profit margin is even less. (~2%)
Interesting insights! I believe the essence of value investing lies in assessing a company's competitive edge and capital efficiency. How do you perceive the impact of these aspects on long-term investment prospects?
Interesting development ... but raises new question.
Can CostPlusDrugs compete with CVS? Why would you want to?
Footnote: PBMs are easy targets - but for every $100 we spend on prescription drugs - about $5 goes to PBMs (generic/brand combined) - and their profit margin is even less. (~2%)
Of course, maybe CVS buys CostPlus. Mark has gone out of his way not to comment on this.
Certainly possible - but I'm not sure it has enough market share - and nothing really proprietary.
When elephants fight - the grass gets trampled ;-)
You would know better than most!
Enjoyed the insight. I have been using Cost Plus for a while and enjoy their prices and transparency. Enjoyed meeting you both on your recent travels.
Same here, Josh. Let's try to connect separately.
Excellent information for everyone, so thank you.
Interesting insights! I believe the essence of value investing lies in assessing a company's competitive edge and capital efficiency. How do you perceive the impact of these aspects on long-term investment prospects?
For CVS? Won't know until you start seeing the details.
Is this move by some of the pharmaceutical industry known as “the Biden Effect “? Good job!
Thanks for the update
Great info!
As always Herb, you get to the heart of important issues … kudos
We can only hope that this is the start of more reasonable prescription drug pricing.
I saw the headline but now I really understand what’s going on. Thanks!
Herb--superb! keep up the great work, old friend!
John Schwartz