Express Scripts Executive: Co Will Keep Weighing Opportunities
September 09 2009 - 4:26PM
Dow Jones News
Express Scripts Inc. (ESRX), working toward closing its planned
purchase of health insurer WellPoint Inc.'s (WLP) in-house pharmacy
benefits management, or PBM, operation, won't stop considering
other potential acquisitions.
"We'll continue to look at opportunities at the right price and
the right circumstances," David Myers, Express Scripts' vice
president for investor relations, said Wednesday at the Thomas
Weisel Partners Healthcare Conference.
The St. Louis pharmacy benefits manager, the third-largest in
the market, will expand significantly once it completes its nearly
$4.7 billion acquisition of WellPoint's NextRx subsidiaries.
Express Scripts expects the deal to close in the fourth
quarter.
After WellPoint and Express Scripts announced their transaction,
which includes a 10-year contract for Express Scripts to provide
services to WellPoint, the market turned its attention to the
potential for other health insurers to divest their in-house
PBMs.
Cigna Corp. (CI) has indicated an interest in placing its PBM
for sale, and The Wall Street Journal reported that Aetna Inc.
(AET) has put its drug-benefits business on the block.
Medco Health Solutions Inc. (MHS), one of the largest PBMs, is
in a good position and will be opportunistic in terms of
acquisitions, its chief executive said a few weeks ago. A
spokeswoman for retail drug store-PBM hybrid CVS Caremark Corp.
(CVS) said last week the company doesn't comment on rumors related
to potential mergers and acquisitions.
Express Scripts shares recently rose 80 cents, or 1.1%, to
$74.74.
-By Dinah Wisenberg Brin, Dow Jones Newswires; 215-656-8285;
dinah.brin@dowjones.com