—Move plays well, validates CVS Health-Aetna vertical integration investment thesis .
BMO Capital Markets managed care analyst, Matt Borsch
—Announcement is “tailor-made” to spoil strong investor sentiment toward managed care in the near-term Inferred targeting of managed care likely driven by description of the company as “free from profit-making incentives and constraints” since managed care industry is more than 50% for-profit.
—Sees investor reaction depending on further detail and shaping of market opinion surrounding the new initiative.
Leerink health IT and distribution analyst, David Larsen
—News is consistent with expectations Amazon’s health-care efforts are “heating up.”
—Project will take years to build, though a lack of clarity and uncertainty will create fear and pressure CVS, Walgreens.
—Boots Alliance, and other supply chain stocks today Comments from Warren Buffett, Jeff Bezos and Jamie Dimon all highlight the complex nature of the industry.
Oppenheimer health IT and distribution analyst, Mohan Naidu
—"This is the beginning of a new type of offering for the consortium of employers to bypass well-established healthcare entities and adopt a disruptive offering," he said, projecting that this will likely accelerate M&A within health care.
—Says PBMs are likely to be significantly affected, followed by dispensaries and supply chain names Says partnership unlikely to have any influence in 2018 or even 2019.
Wells Fargo specialty pharmaceuticals analyst, David Maris
—The fact that three large, well-capitalized companies will plan to attack rising health-care costs and transparency "is just another sign that longer-term, generics and branded pharmaceutical margins are in flux."
—Generic margins could stay under pressure in a more transparent environment, but branded drugs might even see a benefit if rebating is reduced or eliminated, with savings going to both the patient and manufacturer.