Business mix
- Pharmacy benefit management (PBM) is transforming from a rebate system to a cost-transparent Signature model. Three major contracts have been renewed but profit margins have declined. The remaining PBM business is expected to have profit margins return to 4% in 2029, with long-term growth maintaining 2%–4%.
- Health Insurance: Includes various types of medical plans, with stop-loss insurance expected to complete margin repair by 2027 through repricing.
- Specialty business: Revenue contribution has increased to 35% from 20%–25% four years ago. Facing an accessible market of US$500 billion with an annual growth rate of 7%–8%, it focuses on expanding the areas of patient self-administration and physician administration, with an expected annual growth rate of 8%–11%.
Current key questions
- Biosimilar drug opportunities: It has benefited from biosimilar drugs such as HUMIRA and STELARA. In the future, it will deploy Prolia, EYLEA, KEYTRUDA and other products to continue to promote affordability and profit growth.
- Model transition: 2026–2027 is the PBM transformation investment period. At least half of members will switch to the new model in 2028. In 2029, profitability will be the same as the old model. The key to competition is the unit cost advantage of drugs.
