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Magellan Health Services, Inc. (MGLN)

  • 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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  • Sep. 9, 2013, 4:05 PM
    • Magellan Health Services (MGLN) acquires Partners Rx for $100M, in an ongoing effort to expand its pharmacy benefits management offerings.
    • Partners Rx is a company with more than 300K covered lives, focuses on health plans and self-funded employers and sells primarily through third-party administrators, consultants and brokers. It has anticipated 2013 revenue of around $240M.
    • The deal is expected to close in Q4.
    • Once the deal closes, Partners CEO Robert W. Field will also become CEO of unit Magellan Pharmacy Solutions.
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  • Aug. 13, 2013, 12:13 PM
    • Magellan Health Services (MGLN -1.4%) slips this morning after announcing that it's investing another $17.5M in AlphaCare of New York, a newly licensed Medicaid Managed Long Term Care HMO and Medicare Plan.
    • MGLN previously made a $2M equity investment in AlphaCare, in tandem with a $6M loan to AlphaCare Holdings.
    • The latest round brings its total investment in the company to $25.5M, representing a 65% stake in the company after the deal closes.
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  • Jul. 20, 2012, 2:07 PM
    Consolidation in the health care sector continues to be the story today, as Magellan Health (MGLN) gains another 3.6% - on the back of yesterday's +8% pop - after saying it's been working with Credit Suisse for months exploring strategic alternatives, including a potential sale. Speculation is that the sale process is now at an advanced stage.
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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