Almost three weeks ago, the health insurer Cigna announced that it would acquire the pharmacy benefit manager (PBM) Express Scripts. Click here to read my initial analysis of the deal.
Wall Street remains unimpressed. Ever since the transaction was announced, Cigna’s stock price has dropped by 16%. Meanwhile, Express Scripts’ stock is trading more than 20% below Cigna’s offer price, suggesting that many believe the deal won’t be completed.
To soothe rattled investors, Cigna last week filed an intriguing SEC Form 425. It contains 31 questions that you may or may not have been asking yourself about its acquisition of Express Scripts, along with Cigna’s answers.
Below, I highlight my five key insights from Cigna’s responses to its own questions. I support each of these five takeaways by quoting relevant material from the company’s answers to the questions it poses in the document. Riddle me this: When is it easier to interview yourself instead of dealing with skeptical investors?
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