Cigna CEO on CNBC: Express Scripts acquisition about ‘capabilities, reach, quality, affordability’
The proposed $67 billion acquisition of pharmacy benefits manager (PBM) Express Scripts by insurer Cigna isn’t just about acquiring a PBM, according to Cigna CEO David Cordiani, as he defended the deal from the lukewarm response from Wall Street on CNBC’s “Mad Money.”
Cordiani said the takeover would bring 80 million more customers to Cigna, while allowing it to “further accelerate the affordability equation” and lower healthcare costs. It would also help with gaps in quality, caused by pharmaceuticals being administered incorrectly—which Cordiani argued could be erased with the help of Cigna’s network.
“It all starts with having the right products and services for individuals that are affordable, are of high quality and help people live better lives,” he said. “Cigna's been doing that for many years and with the combination of Express Scripts, we'll be able to do that for even more lives and with broader capabilities to keep health care more affordable, have higher quality and connect better with health care professionals.”
As for potential competitors for the combined company given the flurry of megadeals across healthcare segments, Cordiani wouldn’t count the venture between Amazon, Berkshire Hathaway and JPMorgan Chase among them.
“If that joint venture has legs and takes off, they're going to need a service partner and a service provider of choice,” he said. “We'll be really well-positioned.”
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.