On Tuesday, shares of Express Scripts Holding Co. are falling, down about 1.7% in late-morning trading after the company announced plans to purchase privately-held medical benefit management company eviCore Healthcare for $3.6 billion.
Express Scripts, which is the largest stand-alone pharmacy-benefits manager, hopes the deal will help grow its adjusted diluted earnings per share in the first full year of operation. The company also explained how the deal is “an attractive entry point into a growing market.”
EviCore works with health plans in order to decrease the number of medically unnecessary and expensive tests—think imaging scans— and manages medical benefits for 100 million people and has 4,000 employees.
"The rising cost of healthcare is one of the most important issues facing Americans today," Tim Wentworth, CEO of Express Scripts said in a statement. "Together with eviCore, Express Scripts will be an even more powerful partner in managing costs for patients and payers, bringing us closer to our goal of becoming the nation's leading patient benefit manager."
EviCore CEO John Arlotta thinks the two companies will be “uniquely positioned” to help improve healthcare issues. The company will operate as a standalone business unit within Express Scripts.
The deal also comes at an interesting time in the healthcare and pharmacy space, as leaders like Express Scripts await a possible decision from e-commerce player Amazon.com (AMZN - Free Report) , who may or may not move into pharmacy benefits (also read: Could Amazon Be the Next Big Pharmacy Giant?)
Express Scripts is buying eviCore from current investors that include General Atlantic, TA Associates, and Ridgemont Equity Partners. The deal is expected to close in the fourth quarter of 2017, but must be approved by regulators.
ESRX is currently a #3 (Hold) on the Zacks Rank, and shares of the company have fallen over 14% so far in 2017.
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On Tuesday, shares of Express Scripts Holding Co. are falling, down about 1.7% in late-morning trading after the company announced plans to purchase privately-held medical benefit management company eviCore Healthcare for $3.6 billion.
Express Scripts, which is the largest stand-alone pharmacy-benefits manager, hopes the deal will help grow its adjusted diluted earnings per share in the first full year of operation. The company also explained how the deal is “an attractive entry point into a growing market.”
EviCore works with health plans in order to decrease the number of medically unnecessary and expensive tests—think imaging scans— and manages medical benefits for 100 million people and has 4,000 employees.
"The rising cost of healthcare is one of the most important issues facing Americans today," Tim Wentworth, CEO of Express Scripts said in a statement. "Together with eviCore, Express Scripts will be an even more powerful partner in managing costs for patients and payers, bringing us closer to our goal of becoming the nation's leading patient benefit manager."
EviCore CEO John Arlotta thinks the two companies will be “uniquely positioned” to help improve healthcare issues. The company will operate as a standalone business unit within Express Scripts.
The deal also comes at an interesting time in the healthcare and pharmacy space, as leaders like Express Scripts await a possible decision from e-commerce player Amazon.com (AMZN - Free Report) , who may or may not move into pharmacy benefits (also read: Could Amazon Be the Next Big Pharmacy Giant?)
Express Scripts is buying eviCore from current investors that include General Atlantic, TA Associates, and Ridgemont Equity Partners. The deal is expected to close in the fourth quarter of 2017, but must be approved by regulators.
ESRX is currently a #3 (Hold) on the Zacks Rank, and shares of the company have fallen over 14% so far in 2017.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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