Prime Therapeutics closes $1.35 billion Magellan Rx acquisition, uniting pharmacy and medical drug management expertise

EAGAN, Minn. – Dec. 5, 2022 – Leading pharmacy benefit manager (PBM) Prime Therapeutics LLC (Prime) today finalized the previously announced acquisition of Magellan Rx Management, (Magellan Rx), the pharmacy division of Magellan Health, from Centene Corporation. The agreement unites Prime’s strong foundation of pharmacy benefit management (PBM) capabilities with Magellan Rx’s industry-leading total specialty drug management expertise to create a diversified pharmacy solutions organization serving commercial markets and government programs.

“This is a rare opportunity to bring together two highly respected organizations to create an enterprise that is greater than the sum of its parts. Together, we will deliver on the health care Quadruple Aim – affordability, patient service, improved health and engagement with caregivers,” said Ken Paulus, president and CEO of Prime Therapeutics.

The agreement includes the following Magellan Rx business segments:

• Specialty drug management, providing leading-edge solutions across both the pharmacy and medical benefit, clinical programs and formulary management services; and full-service specialty pharmacies.
• A market-leading state government division, serving 28 states and the District of Columbia.
• A full-service PBM, serving 1.7 million members.

For the time being, Magellan Rx will operate independently to focus on existing customer commitments, and, in the coming months, we will work to integrate select business units and functions and begin to assess our strategic alignment and further integration. Mostafa Kamal will continue as Magellan Rx CEO and will join Prime’s executive leadership team. The combined enterprise will have a single go-to-market structure built around three distinct lines of business — PBM services, specialty drug management and state government solutions. Prime will also continue to provide select services to smaller PBMs.

“We’re bringing some of the brightest minds and most dedicated teams in pharmacy together to develop and deliver a next-generation care model that will transform the industry, unlock new possibilities and deliver even more value to those we serve,” said Mostafa Kamal, CEO of Magellan Rx.

Integration planning for the two companies is underway. Both brands will remain in the market for up to a year as the company explores new brand opportunities that convey the innovation, energy and power the combined enterprise brings to the market.