Cigna to acquire Express Scripts

The health insurer Cigna has agreed to buy pharmacy benefit manager Express Scripts, in a USD52 billion deal.

The acquisition is the latest in a wave of consolidations that is sweeping through the healthcare industry amidst concerns over rising healthcare costs and the entry of new organisations in the industry.

Cigna and Express Scripts said to the NY Times that the acquisition would benefit consumers by allowing the two companies to bring together patients’ medical and pharmacy histories to improve treatments and lower costs.

“This step furthers our strategy to improve the affordability and value to the consumer in a more personalised way,” said Cigna’s chief executive, David Cordani, who will serve as chief executive for the combined company.

The completion of the deal would mark the end of Express Scripts as the last major independent pharmacy benefit manager, one that has focused on striking deals with drug companies to lower costs for insurers and employers. The company is responsible for the prescription plans of more than 80 million Americans.

The two companies said that they would continue to offer pharmacy services to other insurers and to employers that do not use Cigna.