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UnitedHealth to Buy Catamaran: What it Means For Mutual Fund Investors (UNH, CTRX)

Shauna O'Brien Mar 30, 2015

Before Monday’s opening bell, UnitedHealth (UNH) reported that it will acquire Catamaran (CTRX). Here’s what the news means for mutual fund investors.

Inside the Deal

UnitedHealth reported its pharmacy business OptumRx has agreed to acquire Catamaran in a $12.8 billion deal, or $61.50 per share. The companies noted that this deal is expected to close in the fourth quarter.

UNH reported that the deal is expected to add 30 cents per share to earnings in 2016.

Merging Will Help the Companies Face Competition

In the merger deal, the two companies are aiming to obtain more favorable prices with pharmaceutical companies, as they face companies like Express Scripts and CVS. The deal will combine the fourth and third largest pharmacy-benefit companies in the U.S.

Mutual Funds to Watch

Investors interested in the two companies may be interested in the funds listed below. These funds currently have the largest stakes in the companies.

Funds Holding UnitedHealth

Symbol	Mutual Fund	Stake
FLPSX	Fidelity® Low-Priced Stock	2.29%
VGHCX	Vanguard Health Care	2.15%
VTSMX	Vanguard Total Stock Market Index	1.75%

Funds Holding Catamaran

Symbol	Mutual Fund	Stake
VGHCX	Vanguard Health Care	2.37%
VMCIX	Vanguard Mid Cap	1.84%
VTSMX	Vanguard Total Stock Market Index	1.74%

The Bottom Line

The funds listed above allow investors to gain exposure to UNH and CTRX while remaining diversified. Investors interested in these companies may also be interested in CVS Health (CVS) or Express Scripts (ESRX).

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