Anthem Inc. plans to launch its own pharmacy-benefits manager, IngenioRx, which will provide services to Anthem health plans and non-Anthem customers starting in 2020, which is when Anthem’s contract with Express Scripts Holding Co. ends. CVS Health Corp. will fill prescriptions and process claims for Anthem under a five-year contract starting in 2020, the company also announced Wednesday. CVS Health said it expects implementation costs will be part of the agreement, but that those costs will likely be immaterial to 2017 earnings. Express Scripts stock declined 0.3% in premarket trade Wednesday after the news, while CVS Health stock rose 2.4%. The announcement follows a contentious and very public battle between Anthem and Express Scriptsover pricing in April. Anthem is Express Scripts’ biggest client, and some investors had held out hope for a reconciliation. Pharmacy-benefit managers are a little-known facet of the complex U.S. pharmaceutical system that negotiate drug prices on behalf of health insurers and employers. The industry has become very concentrated in recent years, with just three players dominating the market. Anthem shares were not active in premarket trade. Shares have declined 1.2% over the last three months, Express Scripts stock has declined 8.7%and CVS Health stock declined 6.9%, compared with a 4% rise in the S&P 500 .
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