Omnicare (OCR), PharMerica (PMC) Shares Sink as CMS Proposes New Rules; JPMorgan Defends Omnicare
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Price: $46.30 +0.15%
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
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Shares of Omnicare (NYSE: OCR) and PharMerica (NYSE: PMC) have tumbled 13 percent and 15 percent, respectively, following a Centers for Medicare & Medicaid Services proposal which would limit the number of drugs prescribed for the elderly.
JPMorgan's Lisa Gill issued a research note defending shares of Omnicare this afternoon, however the stock has not yet bounced. The analyst believes the sell-off in the stock is overdone as Omnicare's management has said profit will not be impacted "materially" by such a change. Gill notes Omnicare already offers unbundled pricing for its consulting and distribution functions.
Gentiva (Nasdaq: GTIV), LHC Group (Nasdaq: LHCG) and Amedisys (Nasdaq: AMED) shares are also following on similar proposals for home healthcare.
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JPMorgan's Lisa Gill issued a research note defending shares of Omnicare this afternoon, however the stock has not yet bounced. The analyst believes the sell-off in the stock is overdone as Omnicare's management has said profit will not be impacted "materially" by such a change. Gill notes Omnicare already offers unbundled pricing for its consulting and distribution functions.
Gentiva (Nasdaq: GTIV), LHC Group (Nasdaq: LHCG) and Amedisys (Nasdaq: AMED) shares are also following on similar proposals for home healthcare.
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