Private Equity Conversations with Fexingo · 2026-08-08 · 9 min
In this episode of Private Equity Conversations, Lucas and Luna explore the quiet wave of private equity investment in pharmacy benefit managers, or PBMs. They start with the recent trend of PE firms acquiring mid-sized PBMs, using the example of a hypothetical regional PBM that was bought by a large fund. The hosts unpack the economics: PBMs sit between drug manufacturers, insurers, and pharmacies, and their revenue comes from fees, rebates, and spread pricing. With rising drug costs and regulatory scrutiny, PE firms see an opportunity to consolidate, negotiate better rebates, and sell services to payers. But there are risks: the FTC has been investigating PBM practices, and some states are pushing for transparency. Lucas and Luna also touch on the broader theme of financial engineering in healthcare, and why PBMs are attractive for long-hold investing. They end with a reflective question about the future of drug pricing under PE ownership.
Other episodes covering the same guests and topics, from across The B2B Podcast Index.
How Private Equity Transformed Your Local Grocery Checkout75 / 100The Quiet Consolidation Of Commercial RoofingHow Private Equity Bought Your Power GridThe Silent Takeover of Nursing HomesHow Private Equity Bought Your Local Funeral Homes
