Express Scripts Responds To Citron: ‘We’re Nothing Like Philidor’

If President-elect Trump wants to crack down on drug pricing, he might start with pharmacy benefit manager Express Scripts (ESRX), short-seller Citron Research suggested Thursday on Twitter (TWTR).

Citron called Express Scripts the “Philidor of the pharma industry,” referring to the specialty pharmacy that Bloomberg reported last year was said to have changed doctors’ orders to boost reimbursements from insurers and juice sales for Valeant Pharamacueticals (VRX), which last year said it was cutting ties with Philidor.

Express Scripts, along with CVS Health (CVS) last year also cut Philidor from their networks.

In an email to IBD, a spokesman for Express Scripts, pointed to that decision in response to Citron’s comments, saying that “we’re nothing like Philidor. As you may recall, we removed Philidor from our network more than a year ago.”

The company added that, while it hadn’t seen any report from Citron, Express Scripts was “a market force that uniquely puts medicine within reach by driving down cost of care and improving health outcomes.”

The remarks from Citron, below, come after Time this week published a story on Trump in which he said that he was “going to bring down drug prices,” adding, “I don’t like what has happened with drug prices.”

Express Scripts plunged 6.7% to 70.75 in the stock market today, falling into sell territory after nearing a 77.55 buy point. CVS Health (CVS), which is a pharmacy benefit manager in addition to being a drug store giant, dropped 3%.

See also  https://research.investors.com/stock-quotes/nasdaq-n-x-t-id-inc-nxtd.htm

IBD’S TAKE: Trump’s tweets may have hurt shares of drug companies and aerospace giant Boeing, but his election has caused steel stocks to surge. 


Citron also tweeted that Andrew Left, Citron’s executive editor, would appear on CNBC’s “Fast Money” this afternoon to talk more about Express Scripts.

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View more information: https://www.investors.com/news/express-scripts-after-citron-criticism-were-nothing-like-philidor/

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