We have been short with a very long term perspective on pharmacy benefit managers $MHS and $ESRX. The point of ZYX Change metod is all about catching the change ahead of the crowd. Our theory is that in the long term pharmacy benefit managers will be disintermediated and their opaqueness will move their clients to other newer pharmacy benrfit managers who provide price transparency to their clients.
Recent earnings from $SXCI support the opaqueness theory.
Now, today following is the news from $WAG:
Delta in talks over prescription drug plan, sources says – DJ (34.39 ) : DJ reports Delta Air Lines (DAL) is in talks with Walgreens for the drugstore giant to offer prescription drugs directly to Delta employees, according to sources familiar with the matter. If the companies signed a deal, it would enable Delta to bypass the pharmacy-benefit-manager model that most major employers use to manage their prescription-drug programs. Delta could then negotiate pricing directly with Walgreen instead of paying a PBM to handle that part of the business in an effort to save on prescription drug costs. It would also be the second time Walgreen has worked directly with a company to supply prescription drugs.
We will continue to add to our short positions in $MHS and $ESRX on spikes up
