Express Scripts Holding Co. (NASDAQ: ESRX) is having an overwhelmingly rough start to the trading session today, and for good reason. The company seems to have lost Anthem as a customer, and that just so happens to be their biggest. As a result, fear took hold in the hearts of investors, sending the stock downward and prompting our partners at Trade Ideas to alert us to the declines. At the moment (9:30), ESRX is trading at $58.67 per share after a loss of $8.58 per share (12.76%) thus far today.
ESRX Loses ANTM
As mentioned above, Express Scripts is having a horrible day in the market today after an announcement that it has lost its biggest customer (Anthem). Anthem has decided to drop the company after it was accused of overcharging by billions of dollars per year.
This comes after ANTM sued ESRX for approximately $15 billion last year saying that it had been overcharged by around $3 billion per year. The accusation was that ESRX was not passing along discounts that it gets from drug makers. In a statement, Tim Wentworth, CEO at ESRX, had the following to offer:
“We do not have $3 billion in savings to give Anthem for Pricing concessions…. This is the point we have made since the figure was first stated by Anthem in January of 2016, at a time when we earned less than $2 billion on Anthem’s business the prior year.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ESRX. In particular, we’re interested in the company’s next steps as well as whether or not the relationship with ANTM will be rekindled. We’ll continue to follow the story closely and bring the news to you as it breaks!
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