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Benzinga
Benzinga
Business
Vandana Singh

Centene Offloads Two Pharmacy Businesses For $2.8B

  • Centene Corporation (NYSE:CNChas agreed to sell Magellan Rx to Prime Therapeutics LLC and PANTHERx Rare to a consortium of The Vistria Group, General Atlantic, and Nautic Partners. 
  • Centene expects to receive approximately $2.8 billion in aggregate proceeds from the transactions.
  • Magellan Rx is a comprehensive pharmacy solutions organization with specialty drug management, Medicaid administration, and comprehensive pharmacy benefits management capabilities.
  • Centene acquired Magellan Rx in January 2022 as part of its acquisition of Magellan Health, Inc.
  • PANTHERx is a specialty pharmacy. Centene acquired PANTHERx in December 2020.
  • Centene will use most of the net proceeds from the sales to repurchase stock and the balance to reduce debt. 
  • Each transaction is expected to be neutral to slightly accretive to Centene's Adjusted Earnings Per Share in 12 months post-closing.
  • The company closed the March quarter with long-term debt of 18.64 billion.
  • Price Action: CNC shares are up 0.93% at $83.67 during the market session on the last check Thursday.
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