Can CVS Overcome the Drug Poised to "Break the Country?"

After Express Scripts' fury at hepatitis C drugs, CVS is surprisingly sanguine. What happened?

May 16, 2014 at 6:30PM

Consider the following quotes:

"What they have done with this particular drug will break the country."

"We expect the impact to be minimal for this year."

These two quotes, the first from Express Scripts' (NASDAQ:ESRX) chief medical officer Steven Miller, the second from John Roberts, president of CVS Caremark 's (NYSE:CVS) Pharmacy Services division, are about the same drug: Gilead's (NASDAQ:GILD) Sovaldi. CVS is clearly confident in its plan to handle the increased hepatitis C spending caused by Sovaldi's excellent cure rate and $84,000 per patient price tag -- Express Scripts is not.

CVS' confidence doesn't just contrast with Express Scripts, either. UnitedHealth Group (NYSE:UNH) , the largest insurer in the United States, also had difficulty handling demand, which was "a multiple" of what management had expected.

CVS appears to have controlled well for the expense, and additional projects like the Minute Clinic concept appear poised to drive further growth at this impressive company. 

In the video below, Motley Fool health care analysts Michael Douglass and David Williamson discuss CVS' potentially strong future and how the company continues to embarrass its competitors.

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David Williamson owns shares of Express Scripts and UnitedHealth Group. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends CVS Caremark, Express Scripts, Gilead Sciences, and UnitedHealth Group. The Motley Fool owns shares of Express Scripts and Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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