Finance
Cigna Express Scripts stock price after Carl Icahn takes stake in health insurer
Reuters
Carl Icahn is reportedly not a fan of Cigna’s $67 billion merger with Express Scripts.
Shares of the pharmacy benefits manager fell as much as 8% Wednesday afternoon following a Wall Street Journal report saying billionaire Carl Icahn had amassed a sizable stake in insurer Cigna. The Journal reported that his stake in Cigna is less than 5% of the company’s outstanding shares.
Shares of Cigna rose about 3.5% on the news.
Cigna, one of the US largest health insurers, announced the deal in March, offering $48.75 per share in cash for Express Scripts in a move aimed to cut soaring healthcare costs. The $54 billion price tag was a 31% premium to Express Scripts’ stock price at the time, and includes about $15 billion worth Express Scripts’ debt.
In April, the Department of Justice asked for an extension to gather more information from Cigna and Express Scripts. The 30-day waiting period needed for the deal to close will not begin until all the information has been obtained, and that process can take a while.
The deal came just months after the $69 billion healthcare mega-merger between health insurer Aetna and drugstore chain CVS Health. These so-called vertical mergers are creating new combinations that are starting to blur the lines of what constitutes a healthcare company at a time when the companies responsible for paying for healthcare expenses — like insurers — are feeling the effects of new procedures and innovative medications coming into the market with high price tags. To counter that, they’ve been consolidating, in part hoping that it will give them more of leverage.
-
Entertainment6 days ago
Jinkx Monsoon promises ‘the queerest season of ‘Doctor Who’ you’ve ever seen!’
-
Business6 days ago
StrictlyVC London welcomes Phoenix Court and WEX
-
Entertainment6 days ago
How to watch every ‘Law and Order’ online in 2024
-
Entertainment6 days ago
BookTok and teens: What parents need to know
-
Business5 days ago
Why Apple’s ‘Crush’ ad is so misguided
-
Business5 days ago
Women in AI: Rep. Dar’shun Kendrick wants to pass more AI legislation
-
Entertainment7 days ago
'House of the Dragon' recap: Every death, ranked by gruesomeness
-
Business4 days ago
Healthy growth helps B2B food e-commerce startup Pepper nab $30 million led by ICONIQ Growth