Dec 8 Short seller Citron's Andrew Left has
turned his sights on Express Scripts Holding Co,
calling the pharmacy benefit manager (PBM) the "real culprit
behind pharmaceutical price gouging."
Shares of Express Scripts, the largest PBM in the United
States, fell as much as 8.8 pct to $69.20.
Drug price increases have been a hot political topic among
U.S. presidential candidates over the past two years.
President-elect Donald Trump, in a Time magazine article on
Wednesday, said he would "bring down drug prices."
"$ESRX is Philidor of the pharma industry.
@therealdonaldtrump promises to fix drug pricing? Two words:
EXPRESS SCRIPTS," Citron tweeted on Thursday. (bit.ly/2goUtlT)
Philidor, a now-shuttered specialty pharmacy, is at the
center of a controversy involving Canada's Valeant
Pharmaceuticals International Inc.
Valeant's close ties with Philidor are under
investigation following allegations that the drugmaker used the
pharmacy to force customers to pay higher prices for its drugs.
Valeant's increasing dependence on the pharmacy to achieve
its sales and profitability goals came to light after Citron
published a report in October 2015 focused partly on Philidor.
Following subsequent revelations, several insurers
terminated contracts with Philidor, and Valeant cut its ties
with the pharmacy. Philidor terminated its operations in
Citron also set a price target of $45 on shares of Express
Shares of drugstore operator CVS Health Corp, which
has a PBM unit, also fell 3.9 percent to $77.40.
(Reporting by Natalie Grover in Bengaluru; Editing by Maju