Express Scripts Plans to Shed Businesses After Medco
Stock Chart for Express Scripts Holding Co (ESRX)
Express Scripts Holding Co., the largest U.S. pharmacy benefits manager, plans to divest a diabetic testing supply business and some units under its research subsidiary.
The company also will dissolve a venture in China and wind down a business in Germany and France, Express Scripts said today in a filing with the Securities and Exchange Commission. The St. Louis-based company will also exit its European headquarters in Amsterdam. The company’s research subsidiary is United BioSource.
The decisions come after Express Scripts completed an acquisition of competitor Medco Health Solutions Inc. in April. The company increased its profit forecast Aug. 7 amid signs of a successful integration and said it expects a profit of $3.60 to $3.75 a share this year, compared with a May forecast of $3.36 to $3.66.
“We are in the process of reviewing the strategic alternatives for several of our adjacent businesses which are not core to our PBM offering,” said Jeffrey Hall, chief financial officer, in an Aug. 8 earnings call. “We do not expect the ultimate disposition of these businesses to have a material impact on our financial results.”
Express Scripts fell less than 1 percent to $61.92 at the close in New York. The shares have gained 39 percent this year.
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