Key Therapeutics paying $1.35 billion for Magellan Health’s pharmacy business enterprise

Eagan-centered Primary Therapeutics is spending $1.35 billion to get Magellan Rx Administration, a pharmacy group that manages specialty medications for people with elaborate overall health ailments that operates with a lot of point out Medicaid systems.

It is the first at any time acquisition by Prime Therapeutics, which is a pharmaceutical positive aspects supervisor owned by Blue Cross and Blue Defend of Minnesota and 18 other overall health insurers that use the Blue brand.

Magellan Rx Management is a division of Magellan Well being. In January, Magellan Wellness was acquired by St. Louis-centered health and fitness insurance company Centene Corp. in a $2.2 billion deal.

“As pharmacy costs balloon, bold action is necessary,” Ken Paulus, the main executive and president of Prime Therapeutics, explained in a assertion. “By bringing together the abilities and talents of Key and Magellan Rx, we are positioned to supply breakthrough worth to the consumers and members we serve.”

Centene mentioned in a information release that the offer, matter to regulatory approvals, is envisioned to near throughout the fourth quarter.

Among other points, Magellan Rx is hired by Medicaid courses in 28 states additionally Washington D.C., according to a news release from Prime Therapeutics. The business enterprise is envisioned to run as a stand-by yourself device.

Pharmaceutical gain administrators (PBMs) negotiate drug rates with makers and contracts with pharmacies that are the basis for the price and construction of treatment advantages within just health insurance programs. Primary Therapeutics suggests it processed previous calendar year far more than 400 million pharmacy claims.