Centene has finalized the sale of Magellan Rx to Prime Therapeutics for $1.35 billion. The decision allows Prime Therapeutics to improve its range of pharmacy benefit management technologies by integrating its expertise with Magellan’s specialty medication management capabilities. As per reports, a total of 19 Blues plans and affiliates control Prime therapeutics.
According to Prime, Magellan Rx will add an additional 1.7 million subscribers to their network with this deal.
Prime Therapeutics is a pharmaceutical company that claims to provide innovative and economical pharmaceutical solutions to its customers. They have a customer portfolio of over 20 million nationwide. Magellan Rx is a nationwide service provider of pharmacy benefits with its main offerings being government plans, corporate health plans, and specialty pharmacy programmes.
Initially, Centene acquired Magellan Health for a value of $2.2 billion. Since then, the company has been selling different divisions of the company publicly. Apart from selling Magellan Rx to Prime, they have finalized the sale of another division of Magellan known as Magellan Specialty to Evolent Health for $750 million. During the press announcement of the partnership with Evolent, Centene referred to Magellan Specialty Health as a benefits management business that delivers industry-leading utilization management solutions.
There is intense competition in the market for Prime Therapeutics with three companies having three fourth of the market share. Prime had signed a three-year collaborative agreement with one of the competitors Express Scripts in 2019.
The CEO of Prime Therapeutics Ken Paulus announced:
“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. Together, we will deliver on the health care Quadruple Aim—affordability, patient service, improved health, and engagement with caregivers.”
Centene has designed a comprehensive value creation strategy and as a part of that Centene made the sale of Magellan Rx to Prime Therapeutics. As part of its January acquisition of Magellan Health, Magellan Rx joined the business.
The CEO of Centene expressed excitement over continuing to work for the successful delivery of the company’s value creation plan post-acquisition, which will allow the company to focus on the core business plans and initiatives.
The integration of Magellan Rx and Prime Therapeutics will begin shortly, but for the time being, Magellan Rx will operate as a separate entity. The CEO of Magellan Rx, Mostafa Kamal, will join the management board of Prime Therapeutics assuming the same position that he had in Magellan Rx. According to Prime, both names will stay on the market for up to a year while the firms examine and investigate additional branding prospects
The CEO of Magellan is collectively bringing together a team of competent individuals to design and roll out the next-generation care model.
