LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Icahn urges Cigna shareholders to vote against Express Scripts deal

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Tue, Aug 07, 2018
10:45 pm
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

Activist investor Carl Icahn on Tuesday urged Cigna Corp shareholders to vote against the health insurer`s $52 billion purchase of Express Scripts Holding Co, citing regulatory hurdles and the growing threat of Amazon.

The Cigna-Express Scripts deal has drawn investor skepticism over concerns that Amazon.com Inc`s entry into healthcare will upend the sector at a time when President Donald Trump has made a push to lower drug prices.

The Trump administration has proposed a rule that will scale back protections currently in place that allow rebates between drug manufacturers and insurers and pharmacy benefits managers (PBMs).

Icahn said the proposed rule, which came after the Cigna-Express Scripts deal agreement, is a clear shot across the bow for the PBM industry.

"We believe this is the start of a concentrated effort to reform drug pricing and eliminate the highly flawed rebate system," Icahn wrote in a letter to Cigna shareholders, adding that the industry will likely move to an entirely fee-based model over time.

Icahn also highlighted the rising threat of Amazon, which in June bought small online pharmacy PillPack, putting the world`s biggest online retailer in direct competition with drugstore chains, drug distributors and PBMs.

"When Amazon starts to compete as we believe they will, with their 100 million Prime users and scale distribution system, they will have no trouble breaking into the so-called ecosystem," Icahn said.

The billionaire investor, who has a long position on Cigna and a short position on Express Scripts, said in the letter titled "Cigna`s $60 billion folly https://carlicahn.com/open-letter-to-cigna-stockholders" that the insurer was overpaying for Express Scripts.

Icahn said Cigna should instead repurchase its shares and pursue partnership with existing pharmacy benefit managers, including Express Scripts.

Icahn owns 1.36 million shares, representing about 0.56 percent of the outstanding shares of Cigna.

Express Scripts` shares fell last week after the news of Icahn`s stake and his opposition to the deal first emerged. Cigna on Thursday said it was confident of winning shareholder approval for its Express Scripts deal. The shareholder vote is due on Aug. 24.

Express Scripts` shares rose 1.7 percent early Tuesday afternoon, and Cigna shares were up 1 percent.

"We believe we are well positioned for growth and remain confident in the deal," Express Scripts spokesman Brian Henry said. Cigna was not immediately available for comment.

Analysts do not expect shareholders to support Icahn, noting that few shareholders have questioned the strategic rationale of the deal.

Leerink analyst Ana Gupte said a majority of current shareholders are likely to vote in favor of the deal, given a large shareholder overlap between the two companies.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

7th Pay Commission latest news today: Central government employees alert! This premium is part of your allowance

PAN Aadhaar Link: Last date is fast approaching! Failing to do this may lead to Rs 10,000 penalty

PUBG Mobile update: PUBG Mobile New State game may not be launched in India?

7th Pay Commission Latest News: Grab this central government job with massive salary, vacancy with CBI—check details

TN TRB Special Teacher Recruitment 2021: Notification released for 1598 vacancies: See exam date, exam scheme and all other details here!

GameStop Stock UPDATE - Surges more than 18 pct, other ''meme stocks'' also rally

LIVE: Gujarat Municipal Election Results 2021: BJP wins 803 seats - Check latest news updates, seat details here

LIVE: Gujarat Local Body Elections Results 2021: BJP wins 2085 seats, Congress gets 602 - Check latest trends, seats details, news updates here

PPF Calculator: Your Public Provident Fund account can make you crorepati! Follow this earn while you sleep strategy

Yes Bank Share Price: Experts unveil this money making strategy in this stock

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved