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Magellan (MGLN) Expands in Precision Oncology With Trapelo

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Magellan Rx Management, a division of Magellan Health, Inc. (MGLN - Free Report) , and Trapelo Health have come together to provide an integrated approach to value-based care in the new era of precision oncology treatments.

Both companies will offer their best capabilities including Magellan Rx’s comprehensive oncology management solution and the Trapelo precision-medicine platform. The capabilities of both entities will enable a fast, precise test and treatment decision support including test order management, results interpretation and streamlined prior authorizations.

Precision medicine is an approach to patient care that allows doctors to select treatments that are most likely to help patients based on the genetic understanding of their disease. This may also be called personalized medicine.

This partnership by Magellan Rx reflects its intent to expand in the precision medicine market space, given its growing size and the dire need for change to the modern oncology approaches from the contemporary ones.

According to the Market Data forecast, North America Precision Medicine Market size was estimated at $16.62 billion in 2020 and is projected to reach a value of $28.13 billion by 2025, seeing a CAGR of 11.1% during the forecast period.

Magellan Health continues to pursue advancement in its business pertaining to the vast healthcare space. The company and Centene Corp. (CNC - Free Report) inked a merger deal by virtue of which the latter is set to acquire the former at a total enterprise value of $2.2 billion. This deal is approved by the boards of directors of both parties and is expected to close in the second half of 2021, subject to customary approvals.

The combination paved the way for integrating behavioral health, specialty healthcare and pharmacy management capabilities of both healthcare providers, which will aid Centene to set up the leading behavioral health platforms across the United States.

The platform not only intends to provide enhanced health outcomes while treating complex populations but also strives to lower healthcare costs. Through this deal, Magellan Health will be part of Centene's Health Care Enterprises and continue to operate independently as well as look for tapping growth opportunities.

Magellan Health has gained 20.8% in six months’ time compared with its industry ’s growth of 9.5%.

Other stocks in the same space include Molina Healthcare (MOH - Free Report) , Aetna Inc., a subsidiary of CVS Health Corp. (CVS - Free Report) et al.

Magellan Health carries a Zacks Rank #4 (Sell) at present. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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