Express Scripts Shares Drop 11% As Anthem Unlikely To Renew Contract

By Wallace Witkowski Markets MarketWatch Pulse

Express Scripts Holding Co. shares dropped in the extended session Monday after the pharmacy-benefits manager said insurer Anthem Inc. does not intend to renew a contract when it expires. Express Scripts shares, which had been halted, fell 11% to $60 after hours on heavy volume, following a 1.2% gain in the regular session. Express Scripts said Anthem does not intend to renew a services contact with the company when it expires at the end of 2019 but has not received official notice of the decision. The company said Anthem accounted for $15.15 billion out of 2015's $101.75 billion in revenue. Express Scripts reported adjusted first-quarter earnings of $1.33 a share on revenue of $24.65 billion. Analysts surveyed by FactSet had estimated earnings of $1.32 a share on revenue of $25 billion. For the year, Express Scripts sees earnings of $6.90 to $7.04 a share, up from its previous forecast range of $6.82 to $7.02 a share. Analysts expect earnings of $6.93 a share.

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