Centene Offloads Two Pharmacy Businesses For $2.8B

Centene Corporation CNC has agreed to sell Magellan Rx to Prime Therapeutics LLC and PANTHERx Rare to a consortium of The Vistria Group, General Atlantic, and Nautic Partners.
Centene expects to receive approximately $2.8 billion in aggregate proceeds from the transactions.
Magellan Rx is a comprehensive pharmacy solutions organization with specialty drug management, Medicaid administration, and comprehensive pharmacy benefits management capabilities.
Centene acquired Magellan Rx in January 2022 as part of its acquisition of Magellan Health, Inc.
PANTHERx is a specialty pharmacy. Centene acquired PANTHERx in December 2020.
Centene will use most of the net proceeds from the sales to repurchase stock and the balance to reduce debt.
Each transaction is expected to be neutral to slightly accretive to Centene's Adjusted Earnings Per Share in 12 months post-closing.
The company closed the March quarter with long-term debt of 18.64 billion.
Price Action: CNC shares are up 0.93% at $83.67 during the market session on the last check Thursday.