Centene has finalized a deal to promote Magellan Rx to pharmacy profit supervisor Prime Therapeutics for $1.35 billion, the businesses introduced Monday.
Centene acquired Magellan Health final yr and subsequently pledged to divest Magellan Rx and one other pharmacy enterprise, PANTHERx Rare, which Centene offered to the Vistria Group, General Atlantic and Nautic Partners in July. Centene will use the proceeds from these offers to repurchase inventory and scale back debt, the corporate stated in May.
The well being insurer acquired Magellan Rx as a part of its $2.2 billion purchase of Magellan Health in January. Centene additionally plans to promote specialty administration service Magellan Specialty Health to Evolent Health for $600 million.
The transactions are a part of Centene’s value-creation plan, which it unveiled final yr after hedge fund Politan Capital Management invested $900 million within the insurer and demanded greater earnings, divestitures and management adjustments.
“We are pleased to continue delivering on our value creation plan with the closing of this transaction, positioning us to remain focused on our core business and strategic priorities on behalf of shareholders,” Centene CEO Sarah London stated in a information launch.
Mostafa Kamal will stay CEO of Magellan Rx and be a part of Prime Therapeutics’ govt management workforce. Prime Therapeutics is owned by 19 Blue Cross and Blue Shield corporations.
“This is a rare opportunity to bring together two highly respected organizations to create an enterprise that is greater than the sum of its parts,” Prime Therapeutics President and CEO Ken Paulus stated in a information launch.