Centene has signed a definitive agreement to sell Magellan Rx and Pantherx Rare in two separate deals for a total of $2.8 billion.
Centene intends to use the proceeds to repurchase stock and the balance to reduce debt, according to a May 5 press release.
Magellan Rx focuses on specialty drug management, Medicaid administration and pharmacy benefits management. It will be sold to Eagan, Minn.-based Prime Therapeutics. Centene only acquired the company in January after purchasing Magellan Health for $2.2 billion. The sale is subject to federal regulatory approvals and is expected to close in the fourth quarter of 2022.
Pantherx is a specialty and rare drug pharmacy in Pittsburgh that Centene purchased in December 2020. The company is being sold to a group: the Vistria Group, General Atlantic, and Nautic Partners. The sale is subject to federal regulatory approvals and is expected to close in the next two to four months.
"These transactions demonstrate significant progress in our ongoing portfolio review and represent key milestones in our value creation plan," CEO Sarah London said. "Last year, Centene announced our strategic plan to exit the pharmacy benefit management space."