Cigna Expands into Hospital Pharmacy Services

Cigna, one of the largest health insurers in the US, has made a significant move to expand its presence in the prescription drug market by acquiring CarepathRx, a major pharmacy serving nearly 10% of US hospitals. The acquisition, announced recently, is seen as a strategic move by Cigna to strengthen its grip on the prescription drug market and further integrate its services.

CarepathRx, backed by private equity, is a significant player in the hospital pharmacy services market, providing prescription drugs to nearly 10% of US hospitals. The company's services include pharmacy management, inventory management, and clinical support, among others. With this acquisition, Cigna will be able to expand its services to hospitals and health systems, providing them with a more comprehensive range of pharmacy services.

The acquisition is seen as a significant development in the healthcare industry, as it marks a further expansion of Cigna's presence in the prescription drug market. Cigna has been actively expanding its services in this area in recent years, with the acquisition of Express Scripts, a pharmacy benefit manager, in 2018. The acquisition of CarepathRx is seen as a natural extension of this strategy, as it will enable Cigna to provide a more comprehensive range of services to its clients.

The acquisition is also seen as a response to the changing healthcare landscape, where there is an increasing focus on value-based care and population health management. By expanding its services in the prescription drug market, Cigna is positioning itself to play a more significant role in this area, providing hospitals and health systems with the tools and resources they need to manage the health of their patients more effectively.

The terms of the acquisition were not disclosed, but it is seen as a significant investment by Cigna in the hospital pharmacy services market. The acquisition is subject to regulatory approval and is expected to close in the coming months.

The acquisition of CarepathRx by Cigna is seen as a positive development by industry analysts, who believe that it will enable Cigna to provide a more comprehensive range of services to its clients. "This acquisition is a natural extension of Cigna's strategy to expand its presence in the prescription drug market," said one industry analyst. "It will enable Cigna to provide a more comprehensive range of services to its clients and position itself for further growth in this area."

Overall, the acquisition of CarepathRx by Cigna is a significant development in the healthcare industry, marking a further expansion of Cigna's presence in the prescription drug market. As the healthcare landscape continues to evolve, it is likely that we will see further consolidation and expansion in this area, as companies seek to position themselves for success in a rapidly changing market.

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* STAT+: Cigna, extending reach into prescription drugs, acquires major pharmacy used by hospitals