Cigna’s chief executive officer defended the company’s merger with the top U.S. pharmacy benefit manager on Thursday, arguing that the transaction will help the insurer curb growing healthcare costs for corporate clients.
The Bloomfield, Conn.-based company expects the $52 billion merger with Express Scripts to close by the end of 2018, but an ongoing review by the Department of Justice may affect that timeline.
The deal will help address rising specialty pharmaceutical costs, CEO David Cordani said, and presents an opportunity to better implement evidence-based care for 16.2 million customers.
“Rising specialty pharmaceutical costs are a top concern,” he said on the earnings call.
The company’s revenue increased 9 percent to $11.4 billion for the quarter that ended on March 31. Net income climbed 61 percent to $3.72 a share.
Prescription benefit managers, which essentially operate as middle-men between insurers and drug manufacturers, are facing heightened congressional scrutiny and some lawmakers have sought to increase price transparency in the industry.
