In the following video segment, Motley Fool health-care bureau chief Brenton Flynn continues his discussion of the smaller Catamaran (CTRX.DL) compared with its much larger peers in the pharmacy benefits management space, and notes that scale is one place where the company simply can't compete. But, on a broader note, he talks about a headwind potentially facing the entire industry, one that was initially a bullish point for PBMs -- the growing utilization rate of generics. He points out that eventually, that's going to hit a ceiling, and at that point, the players in this industry are going to have to shift to services to continue creating value.
The relevant video segment can be found between 9:31 and 11:10.
