- In a regulatory filing, Magellan Health (MGLN -2.6%) discloses that it has mutually agreed to an early termination (effective today) of most of the services it provided under a pharmacy benefit management (PBM) contract with an unnamed client. The company agreed to end the contract earlier than the formal end date of December 31 after the customer entered into a strategic partnership with another firm under which they intend to consolidate services under the partner's preferred PBM vendor. The customer represents 8.5% of Magellan's revenues.
- The company is in discussions with the customer related to specialty drug formulary services under the contract as well as new specialty drug management services.
- Management says the action will not impact its 2016 guidance.