Top health care analyst Lisa Gill on drug pricing, her favorite stock ideas

JPMorgan health care expert Lisa Gill shared her thoughts on the drug pricing debate as well as potential stock picks in an exclusive interview with CNBC PRO’s
Mike Santoli.

“As we think about drug pricing, [pharmacy benefit managers] don’t set the cost at the end of the day,” explained Gill. “The drug distributors distribute a product along with, yes, when there’s drug cost inflation they make a fee off of the average wholesale cost of the drug.”

“When you think about what the pharmacy benefit management companies are trying to do, they’re trying to manage along with negotiate a better cost.”

Gill is usually managing director of U.S. healthcare technology at JPMorgan, where she’s been a member of the health care team since 1998. Her coverage includes health care distribution, pharmacy benefit managers along with drug retail. Prior to her work at JPMorgan, she was part of an audit group specializing in health care facilities at Ernst & Young.

As a part of her interview, Gill also revealed some of her favorite names from the health care space.

“We have historically have liked the PBM industry along with we think of which CVS is usually very well positioned because of of which,” she said. “The additional one I like – I like Lab Corp – along with I think Lab Corp is usually well positioned. the item’s a lab as well as on the CRO side so if we think about incremental innovation on the side of completely new products coming to markets, of which’s another name of which we like.”

Note: CNBC’s interview with Lisa Gill occurred before reports of which CVS Health was looking to acquire health insurer Aetna.

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