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Cigna CEO reaffirms merger with Express Scripts

Investor Carl Icahn says he will vote against $54 billion PBM acquisition as being too high a price.

Susan Morse, Senior Editor

Credit: Google Street ViewCredit: Google Street View

Cigna's reported strong second quarter earnings on Thursday was overshadowed by news the day before that activist investor Carl Icahn plans to vote against the insurer's planned merger with Express Scripts.

Icahn said he believes the $54 billion price tag is too high to acquire the pharmacy benefit manager, according to The Wall Street Journal. Icahn holds less than 5 percent of Cigna's shares.

Cigna announced in March its intention to acquire Express Scripts.

On Thursday, Cigna President and CEO David Cordani signaled his confidence in the intended merger.

"Our strong second quarter results once again reflect the consistent effective execution of our global strategy, which will be further enhanced through our pending combination with Express Scripts," Cordani said 

Cigna reported second quarter net income of $955 million, compared to $750 million for the same quarter the year before.

Adjusted income from operations reflected medical and specialty business growth, strong medical cost performance, a lower tax rate and favorable prior year reserve development, Cigna said.

Revenues increases 10 percent, to $11.5 billion in the second quarter. Operating revenues increased 12 percent compared to the year prior, driven by commercial customer growth as well as premium increases consistent with underlying cost trends, Cigna said.

The customer base increased by close to 330,000 customers, to 16.2 million.

Cigna serves the commercial, individual and Medicare and Medicaid markets.

Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com

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