Catamaran (UNKNOWN:CTRX.DL) is becoming a serious contender in the pharmacy benefits management, or PBM, industry.  The company reported quarterly results last week that crushed expectations.  Revenue was up 101%, and net income shot up 132% in year-over-year comparisons.  

Last year's Q2 results did not yet include the Catalyst merger in the reported financials.  If we do include them, revenue grew 5%, and net income grew 116%. Wall Street clearly liked the improvement to the bottom line. The stock was up 7% on Thursday and is up nearly 25% year-to-date.

Motley Fool Rule Breakers analyst Simon Erickson digs into what is driving the company's success -- including a comparison to industry peers Express Scripts (NASDAQ:ESRX) and CVS Caremark (NYSE:CVS).  He also discusses some metrics to keep an eye on and tailwinds that could help the company in the future.


Editor's note: This video was filmed on Aug. 2, 2013.