Woman’s hand in medicine cabinet

PBM revenue swells along with rising drug costs

Collectively, the four biggest pharmacy benefit managers raked in $150 billion in revenue in the first three months of 2025, reflecting higher spending on medications.

J. Edward Moreno

5/2/25 10:50AM

Pharmacy benefit managers owned by major insurances companies raked in swelling revenues in the first quarter of this year amid growing prescription volumes for more expensive specialty medications, like popular GLP-1 weight-loss drugs.

The four biggest insurance companies — Cigna, UnitedHealth, CVS’s Aetna, and Elevance Health — each have their own PBM. Collectively, the four biggest PBMs made $150 billion in revenue in the first three months of 2025, reflecting higher spending on medications.

Vertically integrated PBMs (those owned by an insurance company) have been criticized over potential conflicts of interest and lack of competition, sparking pushback from lawmakers. The companies say this allows them to get better deals for patients and rein in exuberant prices from drugmakers.

Notably, this quarter CVS announced that it reached a deal with Novo Nordisk to “increase access” to its blockbuster diabetes and weight-loss drugs, Ozempic and Wegovy. This led Eli Lilly, which makes competing weight-loss and diabetes drugs, to fall, because it suggests one of the largest insurers will be pushing patients toward its competitors’ products.

Nia Warfield4h

Amazon doubles down on groceries with new private-label collection, sending grocery stocks lower

Amazon on Wednesday launched Amazon Grocery, a new private-label food brand that combines its Fresh and Happy Belly lines into one collection.

The label covers more than 1,000 staples, from milk and eggs to olive oil and fresh meat, with most items priced under $5. Shares of Amazon were little changed, but grocery-selling rivals Target, Walmart, and Kroger all slipped around 2% following the announcement. Costco also slipped about 1%.

The launch highlights Amazon’s growing push into both grocery and private-label essentials as more customers trade down to cut costs. In August, the e-commerce giant added perishable groceries to same-day delivery in 1,000 cities and towns across the country.

At the same time, Amazon said shoppers purchased 15% more private-brand products in 2024 compared to the previous year across Amazon.com, Whole Foods Market, and Amazon Fresh.

Max Knoblauch5h

Ford sales climb for 7th straight month as EVs hit a quarterly record on tax credit expiration

September marked another banner month for Ford’s electric vehicle business, with EV sales climbing 85% from the same month last year to more than 11,700 units.

For the third quarter as a whole, Ford’s electrified unit sales grew nearly 20%. That’s the division’s best Q3 on record, boosted by the looming end of the $7,500 federal tax credit on Tuesday. Ford, with rival GM, has found some ways to extend that credit in the hopes of keeping sales stable.

Overall, Ford sales rose 8.2% on the quarter, and September was the automaker’s seventh straight month of sales gains. Ford sales have been buoyed this year by panic buying: first from fears of tariff price hikes (and Ford’s strong incentives), and lately from the EV credit expiration.

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WENDY’S TENDYS

Have chicken strips become the fast-food panic button of 2025?

McDonald’s, Taco Bell, and now Wendy’s have all added variations on the theme this year.

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DUAL CLASS

Co-CEOs are back in Corporate America — and Wall Street isn’t sure what to make of it

Dual leadership has boosted shareholder returns historically, though evidence on operations is thin.

Two businessmen fighting for the managing position (holding rudder conflicting with each other)

Max Knoblauch9/30/25

Some automakers are working accounting magic to extend the EV tax credit beyond today’s deadline

The $7,500 EV tax credit is set to expire after today, September 30. Logically, electric vehicle sales are expected to fall off afterward.

But some automakers, including Ford, GM, and luxury EV maker Lucid, have found ways to effectively extend the credit for some customers.

According to reporting by Reuters, Ford and GM have initiated plans to dealers that would have the automakers themselves put down payments on EVs currently in inventory at dealerships. Those down payments would qualify for the expiring tax credit, and dealers would be able to extend the subsidy to future customers through discounted lease rates.

Reuters reports that the programs were launched following discussions between the automakers and the IRS.

In August, Lucid announced that the company would honor the $7,500 tax credit through the end of the year for lessees who order its Gravity SUV by Tuesday at 11:59 p.m. ET.

Exclusive: Ford, GM launch programs to extend use of $7,500 EV lease credit