ST. LOUIS and BLUFFTON, S.C., Dec.
15, 2017 /PRNewswire/ -- Express Scripts Holding
Company (NASDAQ: ESRX) today announced that it has completed the
acquisition of privately held eviCore healthcare, the industry
leader in evidence-based medical benefit management services, for
$3.6 billion. Beginning today,
eviCore contributes to Express Scripts' overall growth and ability
to deliver improved clinical outcomes and savings for health plans,
purchasers and patients.
The combination of two industry leaders, with common values and
complementary strengths, creates a powerhouse in the drive to
improve patient health outcomes while controlling costs and
eliminating wasteful spend. The companies each will continue to
apply evidence-based medicine, advanced data analytics and deep
clinical specialization across Express Scripts' leading pharmacy
benefit management offering and eviCore's medical benefits
management (MBM) platform.
"Americans want access to the best care at a reasonable cost.
They don't differentiate between medical and pharmacy services or
expense, and neither should we," said Tim
Wentworth, President and CEO of Express Scripts. "Joining
forces with eviCore accelerates our shift toward holistic patient
benefit management. It allows us, in partnership with health plans
and payers, to target our country's enormous healthcare waste due
to nonadherence to medicine, unnecessary procedures and a lack of
coordinated, evidence-based care."
"Together with Express Scripts, we can better help health plans
and payers meet the challenge of containing costs while still
providing comprehensive, affordable healthcare benefits," said
John Arlotta, who remains CEO of
eviCore while also joining Express Scripts' senior leadership
team. "They're looking for fewer and more strategic partners to
drive value and serve employees. That's what we offer."
eviCore, which helps manage medical benefits for 100 million
people, offers a broad range of integrated MBM solutions with
leading positions in radiology, cardiology, musculoskeletal
disorders, post-acute care and medical oncology. eviCore contracts
with health plans, including their respective employer clients, to
better ensure appropriate use of healthcare services. eviCore has
approximately 4,000 employees and will operate as a standalone
business unit within Express Scripts.
Acquiring eviCore broadens Express Scripts' ability to drive
value in the use of Specialty medications, which are used to treat
complex and chronic conditions, and comprise the most expensive and
fastest-growing portion of pharmaceutical spend. Nearly half of
total Specialty drug spend occurs in the medical benefit. The
combined company is the industry's most comprehensive specialty
benefit organization.
The acquisition also establishes Express Scripts' platform in
the large and growing MBM market. It targets the total healthcare
industry, which represents nearly $3.4
trillion in annual spend – more than eight times larger than
the pharmacy segment alone. The company is positioned to best
manage the future of healthcare, including gene therapies,
increased adoption of biosimilars and personalized medicine.
Excluding transaction-related expenses and amortization of
intangibles, Express Scripts expects the acquisition to be
accretive to adjusted diluted earnings per share in 2018.
Express Scripts' financial advisors on this transaction are
Lazard Frères & Co., LLC and TripleTree, LLC, and its legal
advisors are Skadden, Arps, Slate, Meagher & Flom, LLP and
Holland & Knight LLP.
eviCore's financial advisors are J.P. Morgan and Morgan Stanley,
and its legal advisors are Paul, Weiss, Rifkind, Wharton &
Garrison LLP and Epstein Becker & Green, P.C.
About Express Scripts
Express Scripts puts medicine within reach of tens of millions
of people by aligning with plan sponsors, taking bold action and
delivering patient-centered care to make better health more
affordable and accessible.
Headquartered in St. Louis,
Express Scripts provides integrated pharmacy benefit management
services, including network-pharmacy claims processing, home
delivery pharmacy care, specialty pharmacy care, specialty benefit
management, benefit-design consultation, drug utilization review,
formulary management, and medical and drug data analysis services.
Express Scripts also distributes a full range of biopharmaceutical
products and provides extensive cost-management and patient-care
services.
For more information, visit Lab.Express-Scripts.com or follow
@ExpressScripts on Twitter.
About eviCore
eviCore offers proven, diversified medical benefits management
solutions that help clients reduce costs while increasing quality
of care for patients. The company provides these solutions to
managed care organizations and risk-bearing provider organizations
serving commercial, Medicare, and Medicaid
populations. Powered by a team of specialized medical
professional resources, extensive evidence-based guidelines, and
advanced technologies, eviCore supports clients by ensuring the
right evidence-based care is delivered at the right time to the
right patient at the right site of care. Flexible medical
benefits management solutions are offered in: Radiology;
Cardiology; Musculoskeletal; Medical Oncology; Radiation Therapy;
Specialty Drug Management; Sleep; Lab Management; and Post-Acute
Care. eviCore is proud to help 100 million members receive higher
quality, lower cost healthcare. For more information, please
visit evicore.com.
Safe Harbor Statement
This press release contains forward-looking statements,
including, but not limited to, business outlook and our statements
related to the Company's plans, objectives, expectations (financial
and otherwise) or intentions. Actual results may differ materially
from those projected or suggested in any forward-looking
statements. Factors that may impact these forward-looking
statements can be found in Management's Discussion and Analysis of
Financial Condition and Results of Operations and Item 1A – "Risk
Factors" in the Company's Annual Report on Form 10-K filed with the
SEC on February 14, 2017 and the
Company's Quarterly Report on Form 10-Q filed with the SEC on
July 25, 2017. A copy of these
documents can be found at the Investor Information section of
Express Scripts' web site at
http://www.express-scripts.com/corporate.
Media Contact
Rachel
Thimangu
314-684-5373
rthimangu@express-scripts.com
Investor Contact
Ben
Bier
314-810-3115
Investor.relations@express-scripts.com
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SOURCE Express Scripts Holding Company