Dallas, Texas 12/27/2013 (FINANCIALSTRENDS) – Express Scripts Holding Company (NASDAQ:ESRX) is an S&P 500 index tracked $50 billion market capped health care plans provider. Being one of the reigning market forces with respect to managed health care, Express Scripts Holding Company (NASDAQ:ESRX) is well placed to force the hand of major drug manufacturers in reducing the price of some of the most sought after life saving drugs which are being released into the markets.
One of Express Scripts Holding Company (NASDAQ:ESRX) latest activist moves was disclosed recently with respect to drugs designed to treat Hepatitis C disease. It has disclosed that it will be initiating a price war between the existing drugs in the market like AbbVie with the likely to be released new drug by another S&P 500 index tracked drug maker Gilead Sciences, Inc. (NASDAQ:GILD).
Gilead Sciences, Inc. (NASDAQ:GILD) is riding a big wave on the back of its announcement that it has observed very encouraging results (It has observed “90 percent success rate in curing hepatitis C ailment in candidates during a 8 week treatment schedule”) from its phase three trials on its target oral drug which is administered in one dose per day as against the existing practice of multiple drugs being administered via multiple doses in the form of injections.
The threatened price war is to be started once the target drug from Gilead Sciences, Inc. (NASDAQ:GILD) get FDA approval sometime next year. The new approach to be taken by the firm was announced by Steven Miller who is the chief medical officer of Express Scripts in these following words, “We will identify which drugs can be pitted against each other and make some really tough formulary decisions.”
Express Scripts Holding Company (NASDAQ:ESRX) stock has been trading at $70.13 per share when the market closed for the day on December 27. This indicates a strong 29 percent increase in market value in the past 12 months. If fact at these heightened valuations, the stock is currently trading at 0l1 percent above its prior 52 week high price points. The stock has been range bound between $52.5 and $70 per share this past year.
