The pharmacy benefit manager sector remains highly fragmented with a few dominant players competing for the largest payers and the remainder of firms in the space battling for smaller health plans. Due to escalating healthcare costs, manufacturers and some regulators continually point a finger in PBMs direction despite evidence to the contrary.
Recent valuations for PBMs and related subsectors have diminished slightly in the last twelve months back to historic norms. Despite this decrease, these companies haven’t experienced the same levels of volatility as most pharmaceutical companies.
This industry snapshot includes both precedent transaction comps and public trading comps for PBMs and companies in tangential sub-sectors, as well as valuation and market trends in the overall PBM space.