UnitedHealth Group Inc "OptumRx Introduces Transparent Pharmacy Care Model"

Research evidence excerpt

UnitedHealth Group Inc "OptumRx Introduces Transparent Pharmacy Care Model"

Global Research

12 May 2026ab

UnitedHealth Group Inc Equities

United StatesOptumRx Introduces Transparent Pharmacy Care

Model Healthcare Providers

12-month rating Buy

12m price target US$410.00New Cost Plus Model Removes Spread Pricing and List Price Linkage

After the close today (5/11), OptumRx announced a new pharmacy model designed to

promote greater transparency to prescription reimbursement. The new model will Price (11 May 2026) US$384.44

eliminate spread pricing and move toward a per-member fee-based system. By the end RIC: UNH.N BBG: UNH US

of 2027, group purchasing is expected to fully transition to flat service fees. OptumRx

had previously committed to passing through 100% of manufacturer drug rebate Trading data and key metrics

discounts by the end of 2027. In an interview with Endpoints, Optum CEO Conway 52-wk range US$384.44-237.77

indicated that this change would not dampen the company's OptumRx margins of 3- Market cap. US$350b

5%. Of note, OptumRx has broadly moved away from the rebate model compared to Shares o/s 910m (COM)

peers. That said, the new model remains optional, except for GPO clients. Broadly, Free float 100%

adoption of these alternative models has been somewhat light. The company will be Avg. daily volume ('000) 1,818

presenting at an investor conference where we hope to hear more regarding the model Avg. daily value (m) US$554.2

and other considerations with respect to the business. Common s/h equity (12/26E) US$106b

P/BV (12/26E) 3.3x

Follows Similar Development from PBM Peers Net debt to EBITDA (12/26E) 1.8x

Optum's announcement follows a similar announcement by Cigna last year where the

company introduced its Signature rebate free model.