Several states are investigating pharmacy benefit managers, with some saying they are focused on whether the companies fully disclosed details about their business and potentially received overpayments under state contracts, according to state officials and documents. States including Ohio, Oklahoma, Georgia, New Mexico, Kansas, Arkansas and Mississippi, as well as the District of Columbia, are scrutinizing PBMs, according to the offices of state attorneys general and auditors, as well as public documents including state contracts and securities filings.
Clayton-based Centene Corp.’s planned $2.2 billion buyout of Magellan Health Inc. was approved last week by Magellan’s shareholders. Centene (NYSE: CNC), a provider of managed health care services, agreed in January to acquire Phoenix-based Magellan Health for $95 per share in cash, a 14.7% premium to Magellan’s last closing price before the deal. Earlier, Centene said the deal had cleared U.S. antitrust approval. The acquisition is still expected to close in the second half of the year, subject to state regulatory approvals and customary closing conditions.
As Amazon starts to roll out its telehealth and pharmacy offerings, most big health systems and insurers don’t yet view it as a threat. But pharmacy benefit managers and vertically integrated payers will be keeping a watchful eye on the company as it starts to encroach on a slice of their business.
Centene Corporation (NYSE: CNC) has announced that as of 11:59 p.m. on March 12th, 2021, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the Company’s proposed acquisition of Magellan Health Inc. has expired. As previously announced on January 4, 2021, the transaction will broaden and deepen Centene’s whole health capabilities and establish a leading behavioral health platform. The combined platform lays the foundation by which the company will continue to invest and innovate for its members, enabling improved health outcomes and faster, diversified growth.
Advanced Medical Pricing Solutions (AMPS), a pioneer in healthcare cost management, is pleased to announce it has acquired Drexi, a pharmacy solution that enables savings by transparent pricing and pass-thru on prescription medications available at a nationwide network of more than 65,000 pharmacies. “This acquisition is part of AMPS’ strategic vision and growth plan to provide a spectrum of programs to manage healthcare costs,” said Kirk Fallbacher, AMPS president and CEO. “With the addition of Drexi, AMPS can now drive savings on more than 90 percent of the benefit expense associated with a self-funded group.”
Southern Scripts announced today that it has received a capital commitment of $100 million from Water Street Healthcare Partners to expand its unique pharmacy benefit management (PBM) model that delivers significant savings to U.S. employers and maximizes members’ access to medications. Founded in 2011 by pharmacists dedicated to creating a truly different PBM model, Southern Scripts features a one-of-a-kind offering focused on customizable solutions that generate significant savings for its customers. A pioneer in pharmacy benefit innovations, Southern Scripts passes through 100 percent of drug pricing and rebates to its customers.
Centene CEO Michael Neidorff joins Yahoo Finance Live to discuss his company’s recent acquisition of Magellan Health, as well as the disbanding of Haven (Amazon, Berkshire, JPM health venture).
Centene Corporation (NYSE: CNC) and Magellan Health, Inc. (NASDAQ: MGLN) today announced that they have entered into a definitive merger agreement under which Centene will acquire Magellan Health for $95 per share in cash for a total enterprise value of $2.2 billion. The transaction, which was unanimously approved by the Boards of Directors of both companies, will broaden and deepen Centene’s whole health capabilities and establish a leading behavioral health platform.
It’s not a secret that the healthcare industry is slow to change. The traditional models for pharmacy benefit managers have been under particular scrutiny of late, with these companies seeing the revival and finalization of the dreaded “rebate rule” and a Supreme Court ruling that could open the door for greater regulation. With these increasing calls for evolution, it begs the question: What would the PBM “of the future” look like? For John Sculley, chairman of startup PBM RxAdvance and former CEO of Apple, it starts with starting to think about how to shake up the traditional rebate approach.
In a ruling that could pave the way for increased regulations by states such as Ohio, the U.S. Supreme Court on Thursday rejected a challenge of a 2015 Arkansas law putting restrictions on pharmacy benefit managers. “We have overwhelming evidence that the PBM marketplace is highly dysfunctional and exceedingly costly,” said Antonio Ciaccia, former lobbyist for the Ohio Pharmacists Association who is now with 3 Axis Advisors, a company set up to expose drug-pricing irregularities. “With the industry problems growing worse, it is encouraging to see the Supreme Court assert the authority of states to control their own fates, rather than leaving their prescription drug costs and access in the hands of a largely unchecked multibillion-dollar industry.”
What We Do
Who We Are
How We Work
Who We Help
Get In Touch
Connect With Us
Subscribe to Our Daily Note
We publish a Daily Note that aggregates M&A activity, notable developments, regulatory changes, and conferences we deem to be of interest to our partners. It is a quick afternoon read and an easy way to keep your finger on the pulse of the healthcare space. Please fill in your name and email address below if you wish to subscribe.