Magellan Health is most likely to be obtained by UnitedHealth Group or by the personal equity company Carlyle Group, according to Ana Gupte, an expert at SVB Leerink.
Gupte stated she anticipates a statement within the next month, or by the end of September at the current. She stated she anticipates Magellan Health to be obtained for about $85 to $90 a share. The stock was trading at $6591 on Monday, offering Magellan a market price of $1.6 billion.
Magellan has a pharmacy-benefits company and a health care system that uses insurance coverage and other services, such as behavioral health. Gupte stated the addition of Magellan would boost UnitedHealth’s offerings in behavioral health, and assist increase the business’s geographical reach in states consisting of Florida, Arizona, and Virginia. UnitedHealth runs the greatest health insurance company in the United States and likewise has a significant pharmacy-benefits company.
“Magellan is an excellent tactical suitable for UnitedHealth throughout both the drug store” and insurance coverage services, Gupte composed.
Dealreporter formerly reported that the health insurance company Anthem and Carlyle had an interest in obtaining Magellan.
Anthem on June 6, revealed the purchase of Beacon Health Options, which offers behavioral health services. With Anthem’s current statement, the business is not likely to obtain Magellan, Gupte stated.
Magellan Health has actually been under pressure from the hedge fund Starboard Worth to enhance efficiency and offer itself, Reuters reported previously this year.
The business is having a hard time to complete since it’s much smaller sized than competitors, especially in the pharmacy-benefits company, Gupte stated. CVS Health obtained Aetna late in 2015 and Cigna integrated with Express Scripts.