Cigna has determined to not purchase Humana, eliminating the potential of making a $140 billion healthcare big, the Wall Avenue Journal reported Sunday.
Cigna is in talks with Humana, however the two sides have been unable to agree on a sale worth and different monetary phrases, the newspaper reported, citing individuals conversant in the matter. A cash-and-stock deal would have been heavy on the inventory, however Cigna shares have fallen 10% since information of a possible merger emerged in late November.
Cigna will as an alternative concentrate on smaller acquisitions and plans to purchase again $10 billion value of extra inventory — for a complete of $11.3 billion in deliberate buybacks, the newspaper reported.
Humana representatives didn’t instantly reply to requests for remark from The Messenger, and a Cigna spokesperson emailed a press launch concerning the inventory buyback that didn’t point out the merger.
Some within the well being care trade have expressed concern concerning the impression on drug costs. Each firms have pharmacy profit managers, or PBMs — intermediaries sandwiched between pharmacies and producers who navigate the complicated world of drug rebates and rebates.
“We’re at all times involved about over-consolidation in well being care,” Mark Wilson, vice chairman of well being and employment coverage and chief economist on the Human Useful resource Coverage Affiliation, informed Bloomberg Regulation. “This would definitely create one of many largest PBMs.”