Express Scripts plans to divest some businesses
Saturday, August 11, 2012
ST. LOUIS (AP) — Express Scripts Holding Co. plans to sell or exit some businesses that fall outside its core pharmacy benefits management operations.
The St. Louis company said Friday that it will divest the diabetic testing supply business under its Liberty brand and some units operated under its United BioSource Corp. subsidiary, which provides pharmaceutical services.
Express Scripts also will dissolve its joint venture in China, leave its European headquarters in Amsterdam and wind down its business in Germany and France.
Company leaders told analysts during a conference call earlier this week the moves will not have a material impact on the performance of Express Scripts.
The businesses fall in the company's "other business operations" segment, which produced 3 percent, or $826.3 million, of Express Scripts' revenue in the second quarter. Other business operations also generated a $6.1 million operating loss in the quarter, according to the company's quarterly statement.
A spokesman said most of the businesses are from the acquisition of Medco Health Solutions. Express Scripts completed that $29.1 billion acquisition in April. The deal created the country's largest pharmacy benefits manager, or PBM.
Pharmacy benefits managers run prescription drug plans for employers, insurers and other customers.
Express Scripts shares fell 73 cents, or 1.2 percent, to $61.78 Friday afternoon after trading as high as $62.48 earlier in the session, just shy of its 52-week high of $62.80.