Economy

Cigna buys Express Scripts for $67B

Cigna buys Express Scripts for $67B

Ameriprise Financial Inc. now owns 5,233,327 shares of the company's stock valued at $331,374,000 after acquiring an additional 996,816 shares during the period.

The companies said the combination will eventually save $600 million a year due to administrative efficiencies. It could also increase their leverage in price negotiations with drugmakers.

"Cigna's acquisition of Express Scripts brings together two complementary customer-centric services companies, well-positioned to drive greater quality and affordability for customers", Cigna's president and CEO David Cordani said in a statement. More interesting news about Express Scripts Holding Company (NASDAQ:ESRX) were released by: Prnewswire.com and their article: "Express Scripts and Walgreens Boots Alliance Expand Group Purchasing Efforts ..." published on February 20, 2018 as well as Wsj.com's news article titled: "Cigna Agrees to Buy Express Scripts for More Than $50 Billion" with publication date: March 08, 2018. Drugstore chains, pharmacy benefit managers and insurers are realigning to gain market share, enhance negotiating leverage and cut costs. That same year, Cigna agreed to combine with Anthem Inc., a deal that was also blocked by regulators. Shares in Humana - which had been seen by Wall Street analysts as a possible target for Cigna - fell 1 percent on Thursday to $270.35.

Cigna is one of the nation's largest insurance companies.

"Obviously, there's not a ton of overlap here in terms of the. businesses", Munken said. During the same period in the prior year, the firm posted $1.88 earnings per share. research analysts anticipate that Express Scripts Holding will post 9.35 EPS for the current year. The goal, the companies say, is to reduce complexity and create better outcomes.

More news: Trump's tariffs are a bad idea

On Wednesday, Food and Drug Administration Commissioner Scott Gottlieb criticized the secretive industry pricing deals in what he called a "rigged system". The move follows a similar merger of insurer Aetna and the drug store chain CVS in December.

Upon completion of the merger, Cordani will head the combined company as president and CEO.

Cigna shareholders will own approximately 64 percent of the combined company and Express Scripts shareholders the remainder.

Cigna intends to fund the cash portion of the deal through a combination of cash on hand, Express Scripts debt and new debt issuance.

Executives with both companies praised the deal, which they hope to complete by the end of the year. Morgan Stanley Senior Funding Inc. and the Bank of Tokyo-Mitsubishi have committed to provide the funding, he said. The combined company's board will have 13 directors, including four from the Express Scripts board.


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