Express Scripts cites UnitedHealth loss in net income drop

Express Scripts Holding Co., the nation's largest pharmacy-benefit manager, said that net income narrowed slightly in the fourth quarter compared with the prior-year period in part due to the loss of UnitedHealth Group as a customer.

The St. Louis-based company reported net income in the fourth quarter was $502 million, compared with $504 million in 2012. Net income for the year rose to $1.84 billion in 2013, compared with $1.3 billion in 2012.

Adjusted claims increased 6% to about $1.48 billion in 2013, compared with $1.39 billion in 2012.

Adjusted claims for the fourth quarter of 2013 fell 12% to $361 million, compared with $411 million in 2012.

Revenue rose for the year to $104.1 billion, compared with $93.7 billion in 2012, while revenue declined in the fourth quarter to about $25.8 billion, compared with $27.3 billion in the same period a year ago.

Express Scripts adjusted its projections for this year, noting that lower-than-expected enrollment in the public insurance exchanges and lower client retention may dampen 2014 results.

The company merged with Medco Health Solutions in 2012, pairing two of the three largest PBMs in a $29 billion deal. UnitedHealth Group in 2013 started to bring its PBM services in-house, which generated about 12% of the PBM market share in 2012. The roll-off was completed by the end of 2013, Express Scripts said.

Express Scripts recently named Tim Wentworth president. The 53-year-old previously served as an executive for Medco.

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