=Express Scripts (ESRX) to be acquired by Cigna (CI) for $48.75/share

• In 2015, Cigna (NYSE:CI) agreed to combine with Anthem (NYSE:ANTM), in a deal that was scuttled by regulators, while late last year Anthem said it would launch its own PBM, dealing a blow to Express Scripts, which is a partner of the health insurer.

Express Scripts confirms deal to be acquired by Cigna (CI) for approximately $67 bln in cash and stock stock ($48.75/share in cash, 0.2434/share in stock) 

The co's announced that they have entered into a definitive agreement whereby Cigna will acquire Express Scripts in a cash and stock transaction valued at approximately $67 billion, including Cigna's assumption of approximately $15 billion in Express Scripts debt. The merger consideration will consist of $48.75 in cash and 0.2434 shares of stock of the combined company per Express Scripts share. The transaction was approved by the board of directors of each company.

• Upon closing, the combined company will be led by David M. Cordani as President and CEO. Tim Wentworth will assume the role of President, Express Scripts. The combined company's board will be expanded to 13 directors, including four independent members of the Express Scripts board.
• Expected to deliver first year double digit earnings per share accretion and enhances Cigna's revenue and earnings growth

The transaction, which is expected to be completed by December 31, 2018, is subject to the approval of Cigna and Express Scripts shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. Until the closing, Cigna and Express Scripts will continue to operate as independent companies.

=Express Scripts (ESRX) reported earnings on Mon 24 Apr 2017 (a/h)

ST. LOUIS (AP) — Shares of Express Scripts Holding Co. tumbled in extended trading Monday after the prescription drug manager said its biggest customer, Anthem, doesn't plan to extend its contract when it expires 2019.

The St. Louis-based company said Monday that Anthem, which is the nation's second-largest health insurer, isn't interested in contract talks even though Express Scripts offered discounts worth up to $1 billion a year.

Express Scripts stock fell $10.11, or 15 percent, to $56.96 in after-hours trading after the company announced the Anthem news along with its first-quarter results. Anthem accounted for about 18 percent of Express Scripts' first-quarter revenue.

"It is difficult for us to understand why Anthem has not recognized the potential value which could be brought forth by engaging in meaningful discussions regarding a mutually beneficial pricing arrangement for the remaining term of our contract and beyond," said Tim Wentworth, president and CEO of Express Scripts.

The two companies have been fighting over prescription drug costs for several years, and Anthem even filed a lawsuit against Express Scripts last year over drug prices.

A spokeswoman for Indianapolis-based Anthem declined to comment Monday. Anthem is scheduled to report its earnings on Wednesday.

Express Scripts said its first-quarter earnings increased slightly to $546.3 million, or 90 cents per share. That's up from $526.1 million, or 81 cents per share, last year.

When non-recurring costs are excluded, Express Scripts said it earned $1.33 per share.

The quarter results topped what 13 analysts surveyed by Zacks Investment Research expected of $1.32 per share.

It reported revenue of $24.65 billion. Ten analysts surveyed by Zacks expected $25.05 billion.

For the current quarter ending in June, Express Scripts expects its per-share earnings to range from $1.70 to $1.74. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.69.

The company expects full-year earnings in the range of $6.82 to $7.02 per share.