The Consolidation Effect: Cigna to acquire Express Scripts
Many knew change was coming when Amazon, Berkshire Hathaway, and JPMorgan made their “we’re starting our own healthcare company” announcement. As they begin to reshape the healthcare sector, industry leaders have started scrambling to rethink their models (mostly doing so outside of their core business) and health insurers have marked PBMs as their most desirable target.
Cigna capitalized on consolidation this morning when they announced their deal to buy Express Scripts for a whopping $69.6B. This deal is perfect timing for Express Scripts as they are set to lose their biggest client, Anthem, who said they would set up their own PBM unit after accusing Express Scripts of overcharging. And after last year’s Cigna – Anthem deal was blocked, this could be Cigna’s way to stay relevant.
Click here to read the Bloomberg summary of the deal.