Express Scripts signed a definitive agreement with WellPoint to acquire that companys NextRx pharmacy benefit management subsidiaries for nearly $4.7 billion.
Under terms of the transaction, St. Louis-based Express Scripts will provide services to Indianapolis-based WellPoint through a 10-year contract. The acquisition price also includes consideration for the value of a future tax benefit for Express Scripts. The deal is expected to close in the second half of 2009 pending customary closing conditions.
NextRx services will be provided through Express Scripts platform and products while WellPoint will retain control of medical policy, formulary and integrated disease management. The companies will work together to conduct pharmacy management and data analytics.
WellPoints NextRx manages more than 265 million prescriptions and provides services to 25 million people. Its parent company has been a target in class-action lawsuits claiming it has held out-of-network reimbursements to artificially low rates.