In the following video segment, Motley Fool health-care bureau chief Brenton Flynn continues his discussion of the smaller Catamaran (UNKNOWN: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.