Is This Contract a Massive Win for Catamaran?

In June, Catamaran signed a 10-year exclusive contract with Cigna to handle all of the health-care network's pharmacy benefits management operations. The deal was huge, with an estimated $5 billion to $5.5 billion of additional revenue impact. Including the previous business that the companies already had, Catamaran now does more than $8 billion a year with Cigna alone.

Rule Breakers analyst Simon Erickson examines how big contracts such as these affect both Catamaran and the overall industry. He also discusses other big opportunities on the horizon and why he remains bullish on the company's stock.

Obamacare will undoubtedly have far-reaching effects. The Motley Fool's new free report "Everything You Need to Know About Obamacare" lets you know how your health insurance, your taxes, and your portfolio could be affected. Click here to read more. 

The article Is This Contract a Massive Win for Catamaran? originally appeared on

Max Macaluso, Ph.D. has no position in any stocks mentioned. Simon Erickson owns shares of Catamaran. The Motley Fool recommends Catamaran, Express Scripts, UnitedHealth Group, and WellPoint and owns shares of Catamaran, Express Scripts, and WellPoint. Try any of our Foolish newsletter services free for 30 days. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story