We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cigna (CI) Focuses on Enhancing Pharmacy Offerings in 2023
Read MoreHide Full Article
Cigna Corporation’s (CI - Free Report) pharmacy business recently revealed its plan to include biosimilars as preferred products within its commercial formularies from 2023. The biosimilars, approved by the FDA, are prescription medications that are quite affordable, safe to consume and have proved to be effective.
Thus, the biosimilars can be considered as clinical substitutes for Humira that caters to patients with rheumatoid arthritis, Crohn’s disease, and psoriasis and is one of the most commonly used biologic specialty medications to treat such diseases.
The decision to extend the latest pharmacy benefit in the form of biosimilars reflects Cigna’s continuous efforts to bring substantial cost savings as well as increased choices for its clients who want to avail specialty medications.
Their expensive nature as well as fewer drug options remain a hindrance while opting for specialty medications. According to Cigna, the average annual price of specialty drug therapy is 75 times more than the cost incurred to obtain therapy for non-specialty prescription drugs. As a result, specialty medications make up for over 50% of total drug spending across the United States.
Thereby, the decision to upgrade its suite of pharmacy products and services and popularize the varied benefits of biosimilars within the market seems to be a well-timed move on CI’s part.
Enhanced pharmacy offerings are expected to lure more customers in buying prescription medications from Cigna’s pharmacy network. This, in turn, is likely to boost its pharmacy revenues that contribute massively to the overall top line of CI. Pharmacy revenues accounted for 70.8% of CI’s top line in the first nine months of 2022. This year, management projects adjusted revenues to be at a minimum of $179 billion, implying minimum growth of 2.8% from the 2021 figure.
Cigna boasts an expansive pharmacy network spread across the United States. At the end of 2021, the network comprised 13 order-processing home delivery and specialty pharmacies, six patient contact centers, 30 specialty dispensing and four high-volume automated dispensing pharmacies. The acquisition of Express Scripts back in 2018 provided a great impetus to CI’s pharmacy business.
Shares of Cigna have gained 57.4% in a year compared with the industry’s growth of 16.9%.
IRadimed’s earnings surpassed estimates in each of the last four quarters, the average being 23.81%. %. The Zacks Consensus Estimate for IRMD’s 2022 earnings indicates a 27.7% rise, while the same for revenues suggests an improvement of 26.5% from the respective year-ago actuals. The consensus mark for IRMD’ 2022 earnings has moved 2.9% north in the past 60 days.
The bottom line of Kala Pharmaceuticals outpaced estimates in two of the trailing four quarters and missed the mark twice, the average being 2.39%. The Zacks Consensus Estimate for KALA’s 2022 earnings is pegged at $13.06 per share. A loss of $109.50 per share was reported in the prior year. The consensus mark for KALA’s 2022 earnings has moved from a loss of $61.00 per share to earnings of $13.06 in the past 30 days.
Elevance Health’s earnings beat estimates in each of the trailing four quarters, the average being 4.11%. The Zacks Consensus Estimate for ELV’s 2022 earnings indicates a 11.7% rise, while the same for revenues suggests an improvement of 13.7% from the respective year-ago actuals. The consensus mark for ELV's 2022 earnings has moved 0.8% north in the past 60 days.
The Elevance Health stock has gained 27% in a year. However, shares of IRadimed and Kala Pharmaceuticals have lost 40.8% and 94.1%, respectively, in the same time frame.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cigna (CI) Focuses on Enhancing Pharmacy Offerings in 2023
Cigna Corporation’s (CI - Free Report) pharmacy business recently revealed its plan to include biosimilars as preferred products within its commercial formularies from 2023. The biosimilars, approved by the FDA, are prescription medications that are quite affordable, safe to consume and have proved to be effective.
Thus, the biosimilars can be considered as clinical substitutes for Humira that caters to patients with rheumatoid arthritis, Crohn’s disease, and psoriasis and is one of the most commonly used biologic specialty medications to treat such diseases.
The decision to extend the latest pharmacy benefit in the form of biosimilars reflects Cigna’s continuous efforts to bring substantial cost savings as well as increased choices for its clients who want to avail specialty medications.
Their expensive nature as well as fewer drug options remain a hindrance while opting for specialty medications. According to Cigna, the average annual price of specialty drug therapy is 75 times more than the cost incurred to obtain therapy for non-specialty prescription drugs. As a result, specialty medications make up for over 50% of total drug spending across the United States.
Thereby, the decision to upgrade its suite of pharmacy products and services and popularize the varied benefits of biosimilars within the market seems to be a well-timed move on CI’s part.
Enhanced pharmacy offerings are expected to lure more customers in buying prescription medications from Cigna’s pharmacy network. This, in turn, is likely to boost its pharmacy revenues that contribute massively to the overall top line of CI. Pharmacy revenues accounted for 70.8% of CI’s top line in the first nine months of 2022. This year, management projects adjusted revenues to be at a minimum of $179 billion, implying minimum growth of 2.8% from the 2021 figure.
Cigna boasts an expansive pharmacy network spread across the United States. At the end of 2021, the network comprised 13 order-processing home delivery and specialty pharmacies, six patient contact centers, 30 specialty dispensing and four high-volume automated dispensing pharmacies. The acquisition of Express Scripts back in 2018 provided a great impetus to CI’s pharmacy business.
Shares of Cigna have gained 57.4% in a year compared with the industry’s growth of 16.9%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Cigna currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Medical space are IRadimed Corporation (IRMD - Free Report) , Kala Pharmaceuticals, Inc. (KALA - Free Report) and Elevance Health Inc. (ELV - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IRadimed’s earnings surpassed estimates in each of the last four quarters, the average being 23.81%. %. The Zacks Consensus Estimate for IRMD’s 2022 earnings indicates a 27.7% rise, while the same for revenues suggests an improvement of 26.5% from the respective year-ago actuals. The consensus mark for IRMD’ 2022 earnings has moved 2.9% north in the past 60 days.
The bottom line of Kala Pharmaceuticals outpaced estimates in two of the trailing four quarters and missed the mark twice, the average being 2.39%. The Zacks Consensus Estimate for KALA’s 2022 earnings is pegged at $13.06 per share. A loss of $109.50 per share was reported in the prior year. The consensus mark for KALA’s 2022 earnings has moved from a loss of $61.00 per share to earnings of $13.06 in the past 30 days.
Elevance Health’s earnings beat estimates in each of the trailing four quarters, the average being 4.11%. The Zacks Consensus Estimate for ELV’s 2022 earnings indicates a 11.7% rise, while the same for revenues suggests an improvement of 13.7% from the respective year-ago actuals. The consensus mark for ELV's 2022 earnings has moved 0.8% north in the past 60 days.
The Elevance Health stock has gained 27% in a year. However, shares of IRadimed and Kala Pharmaceuticals have lost 40.8% and 94.1%, respectively, in the same time frame.