Pharmacy benefit manager Express Scripts Holding Co said Anthem, its biggest customer and one that has sued the company over claims of being overcharged, was unlikely to renew its contract after it ends in 2019. Express Scripts shares tumbled more than 15 percent in extended trading on Monday.
Anthem had sued Express Scripts in March last year, accusing it of charging too much for drugs and operational failures. It also sought the right to terminate the 10-year contract. "The company was recently told by Anthem management that Anthem intends to move its business when the company's current contract with Anthem expires on December 31, 2019, and that Anthem is not interested in continuing discussions regarding pricing concessions," Express Scripts said.
Anthem had also started soliciting proposals for a new service provider, in which Express Scripts was not participating, the company added. Anthem could not be immediately reached for comment. "While the headline that Anthem is leaving Express Scripts is in of itself not surprising, the timing is highly unexpected," Evercore ISI analyst Ross Muken said in a client note.
-Reuters
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