William Blair & Company Initiates Coverage of Catalyst Health Solutions, Inc. With Market Perform Rating
February 20 2009 - 9:15AM
Business Wire
William Blair & Company initiated research coverage of
Catalyst Health Solutions, Inc. (Nasdaq: CHSI) ($20.54), a
full-service pharmacy benefit manager through subsidiary Catalyst
Rx, with a Market Perform rating and an Aggressive Growth company
profile.
Analysts Amanda Murphy and John Kreger estimated that the
company would generate earnings per share of $1.38 in 2009 and
$1.60 in 2010.
�Catalyst Health Solutions has identified a niche market in the
provision of pharmacy benefit management services, with a focus on
providing high-touch customer service as well as highly
customizable PBM services,� Murphy said. �This offering is targeted
to small to midsize employers and regional health plans (less than
200,000 lives), which historically have not been a focus for the
larger PBMs. In addition, Catalyst�s transparent contract economics
appeal to those clients looking for more control over PBM
economics, such as public entities.�
Murphy continued, �We continue to like the PBM space overall,
given our view that the industry is characterized by strong
fundamentals, including underlying growth in utilization driven by
the aging population, margin expansion opportunities inherent in
the business model, and strong cash flow generation. We also
believe the PBMs, which are among the only available and proven
healthcare cost-containment mechanisms, should become increasingly
valuable over time as healthcare funding is reaching a crisis state
in this country. Catalyst Rx provides the opportunity, in our view,
for small- to midcap investors to take advantage of an industry
characterized by robust earnings growth.�
William Blair & Company, L.L.C. is a global investment firm
offering investment banking, asset management, equity research,
institutional and private brokerage, and private capital to
individual, institutional, and issuing clients. Since 1935, we have
been committed to helping clients achieve their financial
objectives. As an independent, employee-owned firm, our philosophy
is to serve our clients' interests first and foremost. For more
information, please visit www.williamblair.com.
For important disclosures and information regarding the firm�s
rating system, valuation methods, and potential conflicts of
interest, please visit:
http://www.williamblair.com/Pages/news_story_dept.asp?uid=1476&depID=4
Additional information is available upon request.
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