Anthem to drop Express Scripts: 4 things to know

Pharmacy benefit manager Express Scripts is slated to lose its largest client, Indianapolis-based Anthem, by 2019 amid a continuing legal battle, Bloomberg reports.

Here are four things to know.

1. In a first quarter earnings release Monday, Express Scripts said it "was recently told by Anthem management that Anthem intends to move its business when the company's current contract with Anthem expires on December 31, 2019, and that Anthem is not interested in continuing discussions regarding pricing concessions for 2017 to 2019 or in receiving the company's proposed pricing for the period beyond 2019."

2. The decision comes during an ongoing legal battle between the two parties. In a lawsuit filed March 2016, Anthem accused Express Scripts of overcharging the payer by roughly $3 billion annually and allegedly not funneling drugmaker discounts to Anthem. While the insurer sued for $15 billion, Express Scripts has denied the allegations.

3. Express Scripts CEO Tim Wentworth told investors Tuesday the PBM doesn't "have $3 billion in savings to give Anthem from pricing concessions."

4. The PBM's contract with Anthem represented 16 percent of its processed prescriptions last year and accounted for 31 percent of Express Scripts' $7.26 billion in Ebitda, Bloomberg reports. Upon release of the news, Express Scripts stock tumbled 13 percent to $58.81. 

Anthem spokesperson Bonnie Jacobs declined Bloomberg's request for comment. 

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