Express Scripts

ycoguqi.wordpress.com
The pharmacy benefits manager anticipates the deal willadd $1 billion to earninga before interest, taxes, depreciation and amortization once it is fully which should take between 12 and 18 That would be a more than 70 percengt increase to Express EBITDA, which was $1.38 billion in 2008. The deal coulrd make Express Scripts the largest public company inthe St. Louisa region, with annual revenue estimated tobe $39 With ’s sale to InBev Emerson currently ranks as the region’s top publicx company with $24.8 billion in 2008 Express Scripts announced April 13 its pland to buy the NextRx subsidiary from one of the nation’s largest health insurers with $61.
6 billion in NextRx is the country’s fourth-largest pharmacy benefir manager. Express Scripts currently ranks third. NextRx serves over 25 million members and manages more than 265 milliojnprescriptions annually. Revenue for the division has been estimatedat $17 Express Scripts processed just over 500 million prescriptions last year and had $21.9i billion in revenue. “The acquisition of NextRcx significantly increases the size and scale of the Charles Rhyee, an analyst with in New said in a report. This increase in scale will allows Express Scripts to negotiate better prices with drug companies and better compete with the current No.
1 and 2 playerzs in the pharmacy benefit marketplace andCVS Caremark. “This will bolste their position to more effectively saidScott Harrison, senior analyst with Clayton-basee . “One of the knocks agains t the company has been the relativer size of Express Scripts versues Medcoor CVS. This transaction essentially takessthat away.” The $4.67 billion transaction price includes $1.4 billion in Express Scripts The remainder will be financed through cash on hand and committee financing, according to Chief Financial Officer Jeff The deal includes a 10-year contract for Express Scriptd to provide services to WellPoint.
That contract will be a majot contributor to the increase inexpected earnings, Hall “Also, this will allow us to continue to get bette r at what we do and increase efficiencies,” Hall Express Scripts stock has responded favorabluy to the deal, rising 13.4 perceng since Monday’s announcement to close at $59.309 a share on Aprip 15. “There are fewer (local publixc companies) today to watch, so to see one continuwe to strengthen its positionis nice,” Harrisohn said. Hall said no specific plans are currentlyg in place to expandExpresse Scripts’ local staff or campus, which is located on the -St. Louisd campus in north St. Louis County.
Express Scripts has 11,000 employees companywide with justover 3,000 in the St. Louis region. NextRx has more than 2,000 employees in offices in Ohio, Texas and California. Expressz Scripts has a history of growing through acquisitions, making six major acquisitions since 1998. The company’sx most recent deal was the $248 million purchaser last year ofthe workers’ compensatiojn pharmacy benefit business of privately held from , a Cambridge, Mass.-basefd private equity investment firm. “Our industry-leading ROIC (return on invested capital) is a testament to our abilitg to acquire and integrate major President and CEO George Paz said in aconferencre call.
“In each case we were able to integrate the new business and pay down the debt in veryshorgt order.” Express Scripts also made an unsuccessfuk attempt two years ago to purchase , offering $26 billiohn for the company which was eventually acquired by CVS.