ST. LOUIS and BLUFFTON, S.C., Oct.
10, 2017 /PRNewswire/ -- Express Scripts Holding
Company (NASDAQ: ESRX) today announced that it has reached an
agreement to acquire privately-held eviCore healthcare, the
industry leader in evidence-based medical benefit management
services, for $3.6 billion. Combining
Express Scripts' leading pharmacy benefit management offering and
eviCore's highly complementary medical benefits management (MBM)
platform will create a uniquely comprehensive patient benefit
management solution.
Express Scripts is acquiring eviCore from current investors
including General Atlantic, TA Associates, and Ridgemont Equity
Partners. The transaction is subject to customary regulatory
approvals and closing conditions, and is expected to close in the
fourth quarter of 2017.
"The rising cost of healthcare is one of the most important
issues facing Americans today," said Tim
Wentworth, President and CEO of Express Scripts. "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.
By further strengthening our independent model and creating
numerous opportunities for growth, the acquisition of eviCore will
deliver value for our clients, patients, providers, and
shareholders."
"The greatest opportunity to improve healthcare is by reducing
wasteful spend and overutilization while delivering quality
outcomes," said John Arlotta,
Chairman and CEO of eviCore. "Together, eviCore and Express Scripts
will be uniquely positioned to tackle these problems. We are proud
of what we have accomplished over 25 years of serving patients and
clients and we are excited about our future with Express
Scripts."
eviCore, which manages medical benefits for 100 million people,
offers a broad range of integrated MBM solutions that drive
significant and immediate cost reductions, and improved quality
care outcomes. eviCore has leading positions managing benefits in
categories including radiology, cardiology, musculoskeletal
disorders, post-acute care and medical oncology – all important
therapeutic areas that are in need of greater cost management.
eviCore contracts with health plans and commercial 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.
The acquisition of eviCore will give Express Scripts an
attractive entry point into a growing market. Today, pharmacy is an
industry with approximately $400
billion in annual spend. Healthcare spend represents nearly
$3.4 trillion. Medical benefit
management is a large and growing market with more than
$300 billion spent annually in the
areas eviCore manages today. Establishing a cornerstone platform in
this market will enable Express Scripts to build a uniquely
comprehensive suite of solutions, with significant opportunities
for cross-selling to both client bases.
The combination of Express Scripts' leading independent PBM
model and eviCore's industry-leading medical cost containment
capabilities across an expanded client base will create an even
more powerful partner for our clients, fully aligned with the
interests of patients and payers. This will further differentiate
Express Scripts and position the company to take advantage of the
transition to value-based care and the increasing demand from
payers for a more comprehensive set of service offerings and
solutions.
Excluding transaction related expenses and amortization of
intangibles, Express Scripts expects the acquisition to be
accretive to adjusted diluted earnings per share in its first full
year of operation.
The company will provide additional information pertaining to
the proposed acquisition of eviCore on its upcoming earnings call
scheduled for October 25, 2017.
Advisors
Express Scripts' financial advisors on this acquisition are
Lazard and TripleTree, LLC. Its legal advisor is Skadden, Arps,
Slate, Meagher & Flom, LLP. eviCore's financial advisors are
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC. Its
legal advisor is Paul, Weiss, Rifkind, Wharton & Garrison,
LLP.
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 their members. 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:
Brian
Henry
314-684-6438
bhenry@express-scripts.com
Investor Contact:
Ben
Bier
314-810-3115
Investor.relations@express-scripts.com
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SOURCE Express Scripts