Cigna Keeps Medical Costs in Check in 3Q, Raises Full-Year Earnings Outlook

Cigna Corp. on Nov. 3 reported third-quarter adjusted earnings per share (EPS) of $6.04, beating the Wall Street consensus expectation of $5.72 and getting a nod from one equities analyst for delivering “well-controlled medical costs.” During the company’s conference call to discuss quarterly results, executives touted Cigna’s big PBM contract win that will allow it to provide pharmacy benefits for Centene Corp. Yet they also fielded a critical analyst question about whether Cigna’s mergers and acquisitions (M&A) strategy is keeping up with the competition.

On the subject of the Centene PBM contract, which will begin in 2024 and cover 20 million members, Cigna CEO David Cordani said it “builds on Express Scripts’ track record as the partner of choice and will present growth opportunities to provide additional Evernorth health services over time.” Added Chief Financial Officer Brian Evanko: “This mutually beneficial partnership will bring significant revenue and be financially accretive over the course of the multi-year contract term.” In 2023, though, the new contract will create a “one-year headwind” financially as Cigna’s Express Scripts division invests funds to get the new partnership started, executives acknowledged.

0 Comments
© 2024 MMIT
Leslie Small

Leslie Small

Leslie has been reporting and editing in various journalism roles for nearly a decade. Most recently, she was the senior editor of FierceHealthPayer, an e-newsletter covering the health insurance industry. A graduate of Penn State University, she previously served in editing roles at newspapers in Pennsylvania, Virginia and Colorado.

Related Posts

wall-street-logo
August 5

Cost-Control Efforts Pay Off for Cigna in Second Quarter

READ MORE
stock
May 13

Cigna Eases Investor Fears With Better Medical Cost, Membership

READ MORE
cigna-logo
February 4

Lower MA, Individual Enrollment Estimates Dim Cigna 4Q Earnings

READ MORE

GAIN THERAPEUTIC AREA-SPECIFIC INTEL TO DRIVE ACCESS FOR YOUR BRAND

Sign up for publications to get unmatched business intelligence delivered to your inbox.

subscribe today