Centene might internalize WellCare PBM business, says Wells Fargo

Wells Fargo analyst Peter notes that Centene (CNC) announced plans to acquire WellCare (WCG) for $120 in cash and 3.38 shares of Centene for each share of WellCare. The analyst expects Centene to eventually internalize WellCare’s pharmacy benefit management (PBM) business, which would likely be another blow to CVS (CVS), WellCare’s current PBM. Centene currently has some of its PBM business with CVS and is bringing that business in-house to its own internal PBM, while WellCare is planning to rebid its PBM contract this year, he notes, adding that this merger would likely mean that contract rebid may not occur and that WellCare would more likely move its estimated $15B-$20B in pharmacy spend away from CVS to Centene for 2021.

https://thefly.com/landingPageNews.php?id=2884949