Express Scripts to buy WellPoint business

Express Scripts, one of the largest pharmacy benefits management companies in North America, is to acquire managed care organization  WellPoint's NextRx subsidiaries for $4.68 billion. The transaction is  expected to close in the second half of 2009 and, unusually, caused both  firms' share prices to rise: WellPoint up 8% to $43.58 and Express  Scripts rose 16% to $56.81.

The deal includes a 10-year contract for Express Scripts to provide  services to WellPoint, while the latter will retain control of medical  policy, formulary and integrated disease management, and will work  alongside Express Scripts to offer pharmacy management and data  analytics to existing customers.

"Our aligned business model, combined with the complementary expertise  and capabilities of WellPoint, creates significant opportunities for  accelerated growth for both organizations," said Express Scripts' chief  executive George Paz.