Cigna to acquire major pharmacy benefit manager for $67 billion.
Today, Cigna Corporation and Express Scripts announced an agreement in which Cigna will purchase the pharmacy benefit manager (PBM) for $67 billion, which includes $15 billion in Express Scripts debt, according to a press release.
The acquisition includes $48.75 and 0.2434 shares of combined stock per PBM share, the release stated.
“Cigna’s acquisition of Express Scripts brings together two complementary customer-centric services companies, well-positioned to drive greater quality and affordability for customers,” David M. Cordani, president, CEO, Cigna said in the release. “This combination accelerates Cigna’s enterprise mission of improving the health, well-being and sense of security of those we serve, and in turn, expanding the breadth of services for our customers, partners, clients, health plans and communities. Together, we will create an expanded portfolio of health services, delivering greater consumer choice, closer alignment between the customer and health care provider, and more personalized value. This combination will create significant benefits to society and differentiated shareholder value.”
Cigna shareholders will own 64% of the new company, while Express Scripts shareholders will own 36%, according to the release.
The novel company will be led by Cordani as president and CEO, while Tim Wentworth, current president and CEO of Express Scripts, will remain president of Express Scripts.
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The acquisition will focus on expanding choices, including a full suite of medical, behavioral, specialty pharmacy, and other health care services, according to Express Scripts. The companies said the consolidation will allow for better services.
Additionally, Cigna and Express Scripts expect that the acquisition may better align patients with their health care providers, which could lead to more coordinated care and better outcomes.
Express Scripts said that it will also streamline and personalize health care by harnessing insights, maximizing evidence-based care, and delivering innovative technology solutions, according to the release.
“First and foremost, we believe this transaction delivers attractive value to the Express Scripts shareholders," Wentworth said. "Together, our 2 organizations will help make the healthiest choices the easiest choices, putting health and pharmacy services within reach of everyone we serve. Adding our company's leadership in pharmacy and medical benefit management, technology-powered clinical solutions, and specialized patient care model to Cigna’s track record of delivering value through innovation, we are positioned to transform healthcare. We will continue to have a distinct focus at Express Scripts and eviCore on partnering with health plans, and together, build tailored solutions for health plans and their members. Importantly, this agreement is a testament to the work of our team and their resolute focus on providing the best care to patients, and the most value to clients.”