Centene has completed a deal to sell Magellan Rx to pharmaceutical benefit management company Prime Therapeutics for $1.35 billion, the companies announced Monday.
Centene acquired Magellan Health last year and later committed to divest from Magellan Rx and another pharmaceutical business, PANTHERx Rare, which Centene sold to Vistria Group, General Atlantic and Nautic Partners in July. Centene will use the proceeds from those transactions to buy back shares and reduce debt, the company said in May.
The health insurer acquired Magellan Rx as part of its $2.2 billion purchase of Magellan Health in January. Centene also plans to sell specialty management service Magellan Specialty Health to Evolent Health for $600 million.
The deals are part of Centene’s value creation plan, which was announced last year after hedge fund Politan Capital Management invested $900 million in the insurance company and demanded higher returns, divesting. capital and leadership change.
Centene CEO Sarah London said in a press release: “We are delighted to continue our plan to create value at the close of this transaction, helping us to continue to focus into core business and strategic priorities on behalf of shareholders”.
Mostafa Kamal will remain CEO of Magellan Rx and join Prime Therapeutics’ executive leadership team. Prime Therapeutics is owned by 19 companies Blue Cross and Blue Shield.
Prime Therapeutics President and CEO Ken Paulus said: “This is a rare opportunity to bring together two highly respected organizations to create a business that is greater than the sum of its parts.
