In this segment from Thursday's Market Checkup, Motley Fool health care analysts David Williamson and Michael Douglass take a look at Catamaran (UNKNOWN:CTRX.DL) following its earnings, and discuss two reasons the pharmacy benefits management company could be set to outperform in the coming year.
First, Catamaran isn't at risk of losing any big clients, with cornerstone customer Cigna firmly in place for a decade. That means investors should be able to count on more additions than subtractions. Secondly, Gilead's (NASDAQ:GILD) blockbuster hepatitis C drug Sovaldi, despite its massive price tag, could actually be a tailwind for the company as its specialty pharmacy unit Briova is poised to increase revenue in a big way this year. Demand for Sovaldi should increase Briova's reach into new areas and gain new customers.
Catamaran's positive spin on Sovaldi and solid book of business are great reasons this stock should definitely be on investors' radars.
David Williamson has no position in any stocks mentioned. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends Catamaran and Gilead Sciences. The Motley Fool owns shares of Catamaran 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.