Prescription benefits managers Express Scripts Inc. said Monday that the purchase of health insurance subsidiaries of WellPoint Inc. NextRX in the management of pharmacy benefits for less than $ 4.68 billion U.S. Dollar in cash and shares.
The convention is in Saint-Louis-based Express Scripts, the third largest pharmacy has around 506 million Regulations in 2008, another 265 million U.S. dollars. For him, almost the No. 1 independent Medco Health Solutions Inc., to Mai and Express Scripts, the purchase prices of medicines.
CVS Care Mark, who was also the shops and pharmacies, over 633 million Regulations in 2008, at the No. 3 position after the transaction.
The companies expect the transaction for the second half of 2009. Express Scripts use the liquidity and debt financing committed U.S. $ 1.4 billion U.S. dollars in shares to pay for the operation, said David Myers, Vice President of Investor Relations.
Investors welcomed the news. Express Scripts shares by more than 9 percent, or $ 4.46 to $ 53.63 in Monday morning trading. WellPoint shares gained more than 5 percent, or $ 2.15 to $ 42.55.
WellPoint Chief Financial Officer Wayne DeVeydt said that his company will receive at least $ 3:28 billion U.S. Dollar in cash and the rest of Express Scripts stock. The insurer will be about U.S. $ 2 billion for the repurchase of shares and approximately 1.8 billion U.S. dollars taxes and the cost of the operation.
Around 500 million U.S. dollars go to pay the debt, and $ 375 million for general corporate purposes, including the development of products and acquisitions.
"It is envisaged that the program for the repurchase of shares reflects our belief that our stock is generally on solid financial situation, including the anticipated revenue, including gains expected strong cash flow from operations," DeVeydt said in a conference call with analysts.
The participants represent NextRx pharmacy benefit management to around 25 million customers WellPoint. WellPoint framework has refused to say how the company generates revenue, but less than 10 percent of the total operating profit.
The transaction consists of a 10 years Express Scripts for the provision of services to WellPoint after the completion of the transaction.
Analysts said that the business generates WellPoint a lower profit margin for the pharmacy of the largest competitors.
Deutsche Bank analyst Scott Fidel said in a statement Monday morning that investors have failed to maintain much of the value of stock in the pharmacy the price for the benefits for companies. He said that the agreement "should be to release a certain value (WellPoint) measures."
The agreement WellPoint a good price is a good omen for the insurance companies with PBM whose Aetna, Cigna and United Health, said Wachovia Capital Markets analyst Matt Perry, in a note to investors.
Express Scripts expects that the agreement is the production of 1 billion U.S. dollars annual income before interest, taxes, depreciation and amortization.
WellPoint is the largest insurers in the registration of a coarse and the 2008th The company and his colleagues were injured by the loss of investment and rising unemployment as a result of the recession. The increase in costs for medical profits were annoyed.
2008, WellPoint school by less than 1 percent, while profits fell by more than 25 percent. The company has pointed out that the increase in unemployment and the decline in revenue from the host in 2009 injured.
Express Scripts has the use of generics, the more profitable for the company brand products. During the fourth quarter of 2008, the use of generic drugs rose to 67.3 percent from 63.7 percent of the company. In 2008 profits increased by around 37 percent.
The pharmacy benefit managers, which cover the medication, usually well into the slowdown that more people are looking for generic drugs or money change, by 90 days on the prescription by mail.
His main competitor Medco Health Solutions Inc., also won a place in the year 2008, an increase of 21 percent of the profits. Franklin Lakes, NJ, had almost twice as much income Express Scripts, 2008.
The convention is in Saint-Louis-based Express Scripts, the third largest pharmacy has around 506 million Regulations in 2008, another 265 million U.S. dollars. For him, almost the No. 1 independent Medco Health Solutions Inc., to Mai and Express Scripts, the purchase prices of medicines.
CVS Care Mark, who was also the shops and pharmacies, over 633 million Regulations in 2008, at the No. 3 position after the transaction.
The companies expect the transaction for the second half of 2009. Express Scripts use the liquidity and debt financing committed U.S. $ 1.4 billion U.S. dollars in shares to pay for the operation, said David Myers, Vice President of Investor Relations.
Investors welcomed the news. Express Scripts shares by more than 9 percent, or $ 4.46 to $ 53.63 in Monday morning trading. WellPoint shares gained more than 5 percent, or $ 2.15 to $ 42.55.
WellPoint Chief Financial Officer Wayne DeVeydt said that his company will receive at least $ 3:28 billion U.S. Dollar in cash and the rest of Express Scripts stock. The insurer will be about U.S. $ 2 billion for the repurchase of shares and approximately 1.8 billion U.S. dollars taxes and the cost of the operation.
Around 500 million U.S. dollars go to pay the debt, and $ 375 million for general corporate purposes, including the development of products and acquisitions.
"It is envisaged that the program for the repurchase of shares reflects our belief that our stock is generally on solid financial situation, including the anticipated revenue, including gains expected strong cash flow from operations," DeVeydt said in a conference call with analysts.
The participants represent NextRx pharmacy benefit management to around 25 million customers WellPoint. WellPoint framework has refused to say how the company generates revenue, but less than 10 percent of the total operating profit.
The transaction consists of a 10 years Express Scripts for the provision of services to WellPoint after the completion of the transaction.
Analysts said that the business generates WellPoint a lower profit margin for the pharmacy of the largest competitors.
Deutsche Bank analyst Scott Fidel said in a statement Monday morning that investors have failed to maintain much of the value of stock in the pharmacy the price for the benefits for companies. He said that the agreement "should be to release a certain value (WellPoint) measures."
The agreement WellPoint a good price is a good omen for the insurance companies with PBM whose Aetna, Cigna and United Health, said Wachovia Capital Markets analyst Matt Perry, in a note to investors.
Express Scripts expects that the agreement is the production of 1 billion U.S. dollars annual income before interest, taxes, depreciation and amortization.
WellPoint is the largest insurers in the registration of a coarse and the 2008th The company and his colleagues were injured by the loss of investment and rising unemployment as a result of the recession. The increase in costs for medical profits were annoyed.
2008, WellPoint school by less than 1 percent, while profits fell by more than 25 percent. The company has pointed out that the increase in unemployment and the decline in revenue from the host in 2009 injured.
Express Scripts has the use of generics, the more profitable for the company brand products. During the fourth quarter of 2008, the use of generic drugs rose to 67.3 percent from 63.7 percent of the company. In 2008 profits increased by around 37 percent.
The pharmacy benefit managers, which cover the medication, usually well into the slowdown that more people are looking for generic drugs or money change, by 90 days on the prescription by mail.
His main competitor Medco Health Solutions Inc., also won a place in the year 2008, an increase of 21 percent of the profits. Franklin Lakes, NJ, had almost twice as much income Express Scripts, 2008.
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