Prime Therapeutics and Magellan Rx celebrate two anniversaries as one companyJuly 13, 2023
Six months into the work of combining Prime Therapeutics (Prime) and Magellan Rx to create a new next-generation pharmacy solutions enterprise, the company is marking two milestone anniversaries. Prime turns 25 later this year and the Magellan Rx brand turns 10.
“It’s important to recognize these anniversaries and the journey that brought us together,” said Mostafa Kamal, president, Prime Therapeutics, and CEO, Magellan Rx. “But we’re not resting on our laurels. We’re moving forward, creating a new company positioned to change health care for the better and provide people with the kind of care we want for our loved ones.”
Prime at 25
Established in 1998 by Blue Cross and Blue Shield plans in Minnesota and Nebraska, Prime’s trusted, straightforward model aligned with Blue Plan goals and member-centered priorities. Through organic growth alone, Prime grew to serve 27 million members through 22 Blue Plans by 2018.
As the market rapidly evolved, CEO Ken Paulus and his team launched a number of significant initiatives to improve Prime’s cost structure, level up its technology and enhance its competitiveness and growth. Today, the Pharmacy Benefit Management (PBM) segment serves 40 million members through 33 health plans, 2,600 employer groups and 130 third party administrators.
“Building on a strong foundation, we made important moves to support our clients, serve our members and substantially expand our market,” Paulus said. “Combining the expertise and leadership Magellan Rx offers in specialty services and government programs with Prime’s PBM scope and scale is among the most significant decisions in our development.”
Magellan Rx at 10
The Magellan Rx story is one of growth, transformation and diversification. The Magellan Rx name hit the market in 2013, but those roots stretch back decades, Kamal said. The State Government Solutions segment has been an innovative leader in providing Medicaid services for more than 40 years and now serves 28 states and the District of Columbia.
The Magellan Rx specialty journey started in 2006 as the company pioneered novel approaches to specialty drug management. Today, we’re the recognized leader in medical and specialty drug management. Our annual “Medical Pharmacy Trend Report™” is the industry’s only detailed source for medical drug trends and strategies. Our Specialty Services segment serves 33 million members across more than 50 health plans. We expect Specialty Services to more than double in size over the next few years as more health plans turn to use for innovative medical and pharmacy solutions.
The Magellan Rx PBM business evolved to become a leader in delivering flexible, customized pharmacy solutions in the mid-market space. Prime’s PBM solutions and scale will bring considerable value to these mid-market clients and create new opportunities for growth.
25 + 10 = 1 new company with a long story yet to write
As Prime and Magellan create a new company, our histories compel us to reimagine pharmacy management, changing health care for the better.
“We’ve traveled a different path than the competition, bringing us to this unique point in time when the market is looking for something new and transformative,” said Kamal, who will succeed Paulus as president and CEO of Prime Therapeutics Aug. 1.
Our unique ownership model — we’re privately held by 19 not-for-profit health plans — means we don’t report to Wall Street, allowing us to align our goals to serve our clients and members. We’re setting the gold standard for integrity, with clear contracts, pricing and fees. And through our omnichannel model, we serve as a collaborative, transparent partner, delivering medicines through the best channel to meet their needs.
“On behalf of everyone at our company, I’m excited to write the next chapter of our story,” Kamal said.
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