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Magellan Health Services, Inc. (MGLN)

  • Wed, Apr. 1, 4:25 PM
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  • Wed, Mar. 18, 7:12 AM
    • Magellan Health (NASDAQ:MGLN) acquires Troy, MI-based 4D Pharmacy Management Systems, a privately-held full-service pharmacy benefits manager serving managed care organizations, employers and government-sponsored benefit programs.
    • The base purchase price is $55M in cash, with up to an additional $30M based on future milestones, including $10M for the achievement of certain growth targets in the underlying dual eligible membership served by 4D and up to $20M for the retention of certain business through 2018. The transaction should close in Q2.
    • For 2015, 4D should generate ~$400M in revenue. It currently serves ~670K members. Magellan does not expect the transaction to materially impact its segment profit guidance.
    • Magellan Chairman and CEO Barry M. Smith says, "4D will increase Magellan's PBM scale and provide the company with inroads in Medicare Pat D, managed Medicaid, dual eligibles and exchanges. With the capabilities that this acquisition brings, combined with our sales momentum, we are well positioned to exceed our long-term growth goal objective of $2.5B of pharmacy revenue by 2018."
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  • Wed, Mar. 4, 12:11 PM
    • Hospitals rally on comments from Supreme Court Justice Anthony Kennedy, often a swing vote in important cases. He says there is a powerful point to the Obama administration's argument that the Affordable Care Act would fall apart if the subsidies were ruled invalid.
    • The Court is currently hearing arguments in the case King v. Burwell, which challenges federal subsidies in states that did not create their own health insurance exchanges. Its final decision will not be announced until June, though.
    • Hospitals and health insurers have the most at stake. They have benefited greatly since the law was signed in 2010. To date, 11.4M Americans have signed up for coverage in 2015, giving both groups more paying customers and potentially cutting the number of non-paying emergency room visits. If the subsidies were ruled invalid then many people would drop coverage due to the higher cost.
    • Related tickers: (HCA +6.2%)(THC +5.4%)(UHS +2.6%)(CYH +5.4%)(LPNT +3.3%)(SEM -0.9%)(SSY)(HUM +0.1%)(CI -0.4%)(CNC)(MOH +0.3%)(ANTM +0.5%)(UNH +0.3%)(MGLN +0.3%)(WCG +0.3%)
  • Thu, Feb. 26, 6:34 AM
    • Magellan Health Services (NASDAQ:MGLN): Q4 EPS of $0.82 beats by $0.33.
    • Revenue of $982.5M (-2.7% Y/Y) beats by $2.13M.
    • Press Release
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  • Wed, Feb. 25, 5:30 PM
  • Wed, Jan. 28, 4:03 PM
    • A study done by researchers from New York and Columbia Universities found that premiums were slightly higher for policies offered on state-run health exchanges where there were higher numbers of competitors, precisely the opposite effect that supposedly characterizes more intense competition.
    • Overall, average monthly premiums were $5.71 higher per additional insurer (p<0.001). In addition, average monthly premiums were $3.18 higher per additional insurer for identical plans offered.
    • The analysis focused on the prices for each unique insurance plan offered on the exchanges in each geographic rating area. The number of rating areas varied widely in the 34 states examined, from only one in NJ, NH and DE to 67 in FL.
    • The authors acknowledge that the higher premiums may be due to higher cost areas (urban vs rural) where more insurers are located rather than a lack of competition.
  • Dec. 16, 2014, 10:32 AM
    • Magellan Health (MGLN +0.2%) guidance for 2015: Revenues: $4.25B - 4.49B; Net Income: $51M - 67M; EPS: $1.90 - 2.50; non-GAAP Net Income: $88M - 100M; non-GAAP EPS: $3.28 - 3.73; Segment Profit: $265M - 285M; CF Ops: $171M - 195M.
    • 2014 guidance confirmed.
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  • Oct. 24, 2014, 10:17 AM
    • Magellan Health (MGLN +1.3%) Q3 results: Net Revenue: $923.2M (+5.7%); Managed Care: $703M (-8.7%); PBM & Dispensing: $220.2M (+112.8%); Cost of Care: $495.2M (-12.3%); COGS: $202.2M (+107.4%); Net Income: $25.8M (-45.3%); EPS: $1.00 (-41.2%); CF Ops: $194.2M (13.4%).
    • 2014 Guidance: Net income: $63M - $77M from $53M - 69M; Segment profit: $243M - $258M from $238M - 258M; CF Ops: $207M - $226M from $204M - 226M; diluted EPS: $2.30 - $2.81 from $1.90 - $2.47; fully adjusted net income: $88M - $102M from $74.5M - $92.5M; adjusted EPS: $3.21 - $3.72 from $2.67 - $3.32.
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  • Oct. 24, 2014, 6:39 AM
    • Magellan Health Services (NASDAQ:MGLN): Q3 EPS of $1.30 may not be comparable to consensus of $0.84.
    • Revenue of $923.17M (+5.7% Y/Y) misses by $13.02M.
    • Press Release
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  • Oct. 23, 2014, 5:30 PM
  • Aug. 26, 2014, 1:55 PM
    • Magellan Health (MGLN +0.2%) appoints Dr. Karen Amstutz as Chief Medical Officer. She joins the company from Evolent Health where she was VP of Medical Affairs.
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  • Jul. 25, 2014, 11:05 AM
    • Led by the plummet in WellCare Health Plans (WCG -18.8%) the managed care industry can't seem to find a friend in the market today.
    • Related tickers: (UNH -1.3%) (WLP -1.9%) (AET -1.6%) (CI -1%) (HUM -2.8%) (CNC -6.6%) (HNT -2.3%) (MOH -5.4%) (MGLN -8.1%)
  • Jul. 25, 2014, 7:07 AM
    • Magellan Health (NASDAQ:MGLN) Q2 results: Net Revenue: $888.0M (+5.4%), Managed Care: $682.3M (-8.6%), PBM & Dispensing: $205.7M (114.3%); Cost of Care: $481.6M (-10.4%); COGS: $192.6M (+113.5%); Net Income: $5.0M (-84.1%); EPS: $0.18 (-84.3%); CF Ops: $137.1M (+57.8%).
    • 2014 Guidance: Net income: $53M - 69M; Segment profit: $238M - 258M; CF Ops: $204M - 226M; diluted EPS: $1.90 - 2.47; fully adjusted net income: $74.5M - 92.5M; adjusted EPS: $2.67 - 3.32.
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  • Jul. 25, 2014, 6:46 AM
    • Magellan Health Services (NASDAQ:MGLN): FQ3 EPS of $0.39 misses by $0.19.
    • Revenue of $888M (+5.4% Y/Y) beats by $24.9M.
    • Press Release
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  • Jul. 24, 2014, 5:30 PM
  • Jul. 3, 2014, 11:07 AM
    • Saying that most custom-mixed medicines are either ineffective or overpriced, pharmacy benefit manager Express Scripts (ESRX +0.6%) plans to drop coverage for 1,000 drug ingredients found in compounded meds. The company states that the move will reduce employers' spending on compounded prescriptions by 95%. Express Scripts SVP Glen Stettin says, "What we are eliminating is, pure and simple, wasteful spending. These drugs are being used when there are other things available that are already approved by the FDA and are less expensive." The cuts will take effect on September 15, 2014 unless customers specifically ask to continue paying for them. Firms who want to opt out of the cuts must notify ESRX by Thursday (not sure if this means today).
    • Predictably, compounding pharmacists lack enthusiasm for the move saying that it will deprive patients of much-needed medications.
    • Related tickers: (UNH +0.7%) (CTRX +0.4%) (BIOS -0.2%) (WLP -0.7%) (AET +0.3%) (CI +0.6%) (HUM +0.2%) (CNC) (WCG +0.3%) (MOH +1.4%) (MGLN +0.5%)
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Company Description
Magellan Health Inc provides managed healthcare business. The Company provides services to health plans, insurance companies, employers, labor unions and various governmental agencies.
Sector: Healthcare
Country: United States