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Cigna

Cigna Group

Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense, and it recently won a deal with top-tier insurer Centene. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, and the company operates mostly in the US with 18 million US medical members covered as of December 2023.

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In a significant development in the health insurance industry, Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) has reinitiated discussions to merge with Humana Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>), potentially creating a giant in the sector.
Talks, previously stalled over pricing disagreements, have resumed with a focus on a transformative consolidation that could reshape market dynamics.
According to a <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-10-18/cigna-resumes-merger-discussions-with-humana-after-talks-ended-last-year?sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a> report on Friday, the early talks about the merger would significantly expand Cigna&#8217;s footprint in Medicare Advantage alongside its commercial insurance prowess while leveraging Humana&#8217;s strong Medicare segment.
Also: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40964870/us-federal-trade-commission-sues-cvs-health-cigna-unitedhealths-pharmacy-benefit-managers-for-infl" rel="noreferrer noopener">US Federal Trade Commission Sues CVS Health, Cigna, UnitedHealth&#8217;s Pharmacy Benefit Managers For Inflating Insulin Prices</a>
Last year, both <a target="_blank" href="https://www.benzinga.com/markets/equities/23/11/36007194/whats-going-on-with-healthcare-insurance-giant-cigna-stock-today" rel="noreferrer noopener">companies faced challenges</a> as they navigated federal pressures to reduce Medicare costs, severely impacting Humana&#8217;s market performance and valuation.
These resumed talks hint at a possible major realignment aiming to fortify their positions against competitors like UnitedHealth Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) and&nbsp;CVS Health Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>).
The merger discussions are still in the nascent stages, with no decisions made. Both companies declined to comment on the ongoing negotiations.
A potential deal, estimated to be among the top five health insurance mergers, reflects a strategic shift in the industry focused on consolidation amid rising healthcare costs and stringent regulatory environments.
This deal could not only stabilize Humana&#8217;s declining Medicare enrollments but also enhance Cigna&#8217;s capabilities in managing more comprehensive healthcare plans.
Furthermore, a merger could ease the competitive pressure from the rapidly growing sectors of the industry, providing a robust challenge to established giants.
Humana&#8217;s stock value sharply declined due to lower-than-expected government reimbursements and increased demand for medical services. The merger is, therefore, potentially crucial for recovery and growth.
Price Action: CI stock is down 4.18% at $321.94, and HUM stock is up 0.88% at $269.50 at last check Monday.
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General

Cigna And Humana Revive Early Merger Talks After Year-Long Pause As Medicare Cost Pressure Looms

WIIM

The Cigna Group shares are trading lower after a report suggesting the company has resumed merger discussions with Humana.

With U.S. stock futures trading mixed this morning on Monday, some of the stocks that may grab investor focus today are as follows:
<ul>
<li>Wall Street expects SAP SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAP#NYSE">SAP</a>) to report quarterly earnings at $1.33 per share on revenue of $9.29 billion after the closing bell, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>. SAP shares gained 0.2% to $230.87 in after-hours trading.</li>
<li>Public Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSA#NYSE">PSA</a>) named Chris Sambar as COO. Public Storage shares gained 0.1% to close at $345.62 on Friday.</li>
<li>Analysts are expecting Nucor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>) to post quarterly earnings at $1.47 per share on revenue of $7.28 billion. The company will release earnings after the markets close. Nucor shares gained 0.1% to close at $158.24 on Friday.</li>
</ul>
Check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
<ul>
<li>The Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) shares fell in after-hours trading after a report suggesting the company has resumed merger discussions with Humana Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>) after the conversation ended last year. Cigna shares fell 4.7% to $320.26 in the after-hours trading session.</li>
<li>Analysts expect Logitech International S.A. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LOGI#NASDAQ">LOGI</a>) to report quarterly earnings at 99 cents per share on revenue of $1.11 billion after the closing bell. Logitech shares rose 1.2% to close at $88.63 on Friday.</li>
</ul>
Check This Out: 
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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/10/41402086/wall-streets-most-accurate-analysts-give-their-take-on-3-financials-stocks-delivering-hi">Wall Street&#8217;s Most Accurate Analysts Give Their Take On 3 Financials Stocks Delivering High-Dividend Yields</a></li>
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Earnings

Pre-Market Outlook

Markets

LOGI

SAP, Nucor And 3 Stocks To Watch Heading Into Monday

The Cigna Group shares are trading lower after a report suggesting the company has resumed merger discussions with Humana after the conversation ended last year.

<a href="https://www.bloomberg.com/news/articles/2024-10-18/cigna-resumes-merger-discussions-with-humana-after-talks-ended-last-year?srnd=phx-deals">https://www.bloomberg.com/news/articles/2024-10-18/cigna-resumes-merger-discussions-with-humana-after-talks-ended-last-year?srnd=phx-deals</a>
&nbsp;

'Cigna Resumes Merger Discussions With Humana After Talks Ended Last Year' - Bloomberg

ALHC

Shares of health insurance stocks are trading lower following recent weak earnings and guidance from multiple companies in the sector. CVS fell on Friday amid a CEO change and weak guidance.

On Friday, CVS Health Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) appointed longtime executive David Joyner as its new president and CEO, replacing Karen Lynch amid the company&#8217;s <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/n41398693/cvs-health-appoints-david-joyner-president-and-chief-executive-officer" rel="noreferrer noopener">ongoing financial struggles</a>.
Joyner, previously president of CVS Caremark and an executive vice president at the company, steps into this leadership role as Roger Farah, CVS&#8217;s board chairman, assumes the executive chair position.
The company warned that its upcoming third-quarter earnings, set for release on November 6, will miss Wall Street projections.
The company revealed preliminary third-quarter 2024 adjusted EPS of $1.05-$1.10, compared to the <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $1.70</a>. Analysts expect sales of $92.73 billion.
Results for the third quarter include charges to record premium deficiency reserves (PDRs), primarily related to the company&#8217;s Medicare and Individual Exchange businesses inside its Health Care Benefits segment, of approximately&nbsp;$1.1 billion, which lowered third quarter 2024 Adjusted EPS by&nbsp;$0.63.
In the third quarter of 2024, CVS continued to experience medical cost trends over those projected in its prior outlook.
The Medical Benefit Ratio for the third quarter is currently expected to be approximately 95.2%, which includes a 220-basis point impact from the PDRs.
The company added, &#8221; In light of continued elevated medical cost pressures in the Health Care Benefits segment, investors should no longer rely on the company&#8217;s previous guidance.&#8221;
The pharmacy giant is also backing away from the fiscal year 2024 issued during the second-<a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40220306/cvs-health-reports-mixed-q2-earnings-lowers-2024-outlook-reshuffles-segment-management" rel="noreferrer noopener">quarter earnings release</a>.
The company&nbsp;reported second-quarter sales of $91.23 billion, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $91.51 billion</a>.&nbsp;Adjusted EPS of&nbsp;$1.83&nbsp;decreased from&nbsp;$2.21&nbsp;in the prior year, beating the consensus of $1.73.&nbsp;
In Q2 earnings, CVS Health revised its 2024 adjusted EPS guidance to $6.40-$6.65&nbsp;from at least&nbsp;$7.00&nbsp;versus consensus of $6.98.
CVS Health&nbsp;forecasted&nbsp;2024 sales of $369.0 billion—$372.0 billion versus a consensus of $368.876 billion at prior guidance of at least $369 billion.
The company expected a medical benefits ratio of 90.6% – 90.8% versus ~<a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40220306/cvs-health-reports-mixed-q2-earnings-lowers-2024-outlook-reshuffles-segment-management" rel="noreferrer noopener">89.8% expected earlier</a>.
The company is already struggling as the Federal Trade Commission (FTC) filed a formal complaint against three major pharmacy benefit managers (PBMs)—CVS Health&#8217;s Caremark,&nbsp;Cigna Corp&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>)&nbsp;Express Scripts, and&nbsp;UnitedHealth Group Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>)&nbsp;Optum—for allegedly engaging in unfair and anti-competitive practices that have inflated the list&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40964870/us-federal-trade-commission-sues-cvs-health-cigna-unitedhealths-pharmacy-benefit-managers-for-infl" rel="noreferrer noopener">price of insulin medications</a>.
As per an October report, CVS Health is also considering a major restructuring that could involve separating its&nbsp;retail <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/10/41115344/cvs-health-mulls-split-of-retail-and-insurance-divisions-to-address-financial-challenges-report" rel="noreferrer noopener">and insurance businesses</a>.
These talks with financial advisers explore how a potential breakup would work, although no final decisions have been made yet.
Price Action: At last check on Friday, CVS stock was down 12.30% at $55.87 during the premarket session.
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Image via Shutterstock

Guidance

Management

Pharmacy Retailer CVS Health Backs Away From Annual Forecast, Names New CEO

Shares of health insurance stocks are trading lower in sympathy with Elevance Health, which reported a Q3 earnings miss and issued soft FY24 guidance.

Cigna Healthcare marketplace customers benefit from:
<ul>
<li>24/7 virtual care: Customers have 24/7 access to MDLIVE's virtual and mental health care for routine visits via video or phone. Members also have access to virtual primary care, dermatology and $0 urgent care, as well as $0 wellness screenings.1 Urgent care services can be delivered via video, phone or an e-treatment option.</li>
<li>Diabetes assistance: Customers pay no more than $25 for a 30-day supply or $75 for a 90-day supply of insulin and some medications for type 2 diabetes, lowering out-of-pocket costs by 40% or more for people with diabetes. In select markets, Enhanced Diabetes Care plans offer $0 on insulin and select diabetes medications, equipment and additional supplies.,2,3</li>
<li>Guided customer care: Cigna Healthcare provides personalized health care support for customers with complex health needs through the My Personal Champions programs and direct access to specialty pharmacists through therapeutic resource centers.</li>
<li>Incentives for healthy behaviors: Through our Take Control Rewards&#xAE; Program, Customers 18 and older can earn points redeemable for a debit card, which can be used toward health care costs or merchandise.4</li>
<li>Personalized digital tools: Customers can use the myCigna&#xAE; website and mobile app for proactive and personalized health management support to find quality in-network providers, ways to save money, order and refill prescriptions, and more. Additionally, customers can receive support from nurses and other clinical providers through a secure texting option.</li>
<li>$0 preventive health care: All Cigna Healthcare plans offer $0 preventive care.5 Select plans offer a $0 medical deductible or $0 copays on various benefits, such as primary care visits and generic drugs.6,7</li>
<li>Customer Service 24/7/365: Customers with questions can call any time for help using their plan or navigating their benefits. Customers can also speak to a licensed clinician 24 hours a day.</li>
</ul>

Cigna Healthcare Will Provide Affordable, Comprehensive Health Care Plans In 11 States Through The Individual Marketplace In 2025

In September, the Federal Trade Commission (FTC) filed a formal complaint against three major pharmacy benefit managers (PBMs)—CVS Health Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) Caremark,&nbsp;Cigna Corp&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>)&nbsp;Express Scripts, and&nbsp;UnitedHealth Group Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>)&nbsp;Optum—for allegedly engaging in unfair and anti-competitive practices that have inflated the list&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40964870/us-federal-trade-commission-sues-cvs-health-cigna-unitedhealths-pharmacy-benefit-managers-for-infl" rel="noreferrer noopener">price of insulin medications</a>.
The&nbsp;<a target="_blank" href="https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-sues-prescription-drug-middlemen-artificially-inflating-insulin-drug-prices" rel="noreferrer noopener">complaint</a> accuses the PBMs of creating a system that benefits them financially by prioritizing drug rebates, forcing patients to pay higher costs for life-saving insulin. These PBMs, referred to as the Big Three, administer around 80% of prescriptions in the U.S.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/07/39695378/ftc-investigation-uncovers-anti-competitive-practices-by-handful-of-pharmacy-benefit-managers-includ" rel="noreferrer noopener">FTC Investigation Uncovers Anti-Competitive Practices By Handful Of Pharmacy Benefit Managers, Including CVS Health, UnitedHealth</a>.
CVS Health and UnitedHealth Group have requested that U.S. Federal Trade Commission (FTC) Chair Lina Khan and Commissioners Rebecca Kelly Slaughter and Alvaro Bedoya recuse themselves from an ongoing FTC lawsuit.
The companies, in motions shared with Reuters following their Tuesday filing in the FTC&#8217;s internal court, argued that Khan, Slaughter, and Bedoya have shown bias against pharmacy benefit managers and have already formed judgments on their pricing practices.
CVS referenced the commissioners&#8217; 2022 statements, which accused pharmacy benefit managers (PBMs) of excluding more affordable generics from coverage plans. The company also noted 2024 congressional testimony where PBMs were labeled &#8220;middlemen&#8221; between drug manufacturers and patients needing medication.
UnitedHealth argued that the commissioners&#8217; involvement in anti-PBM events showed bias against the industry, Reuters reports.
CVS further highlighted claims that volume-based discounts, or rebates, contribute to higher patient costs. It also pointed to FTC Chair Lina Khan&#8217;s appearance at a 2022 National Community Pharmacist Association event, an organization of independent pharmacists critical of PBMs.
Last week, Texas Attorney General Ken Paxton filed a lawsuit against several major insulin manufacturers and pharmacy benefit managers (PBMs), alleging a conspiracy to&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/10/41172976/texas-attorney-general-sues-insulin-manufacturers-and-pharmacy-benefit-managers-over-price-fixing-co" rel="noreferrer noopener">inflate insulin prices</a>.
The&nbsp;<a target="_blank" href="https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-big-pharma-drug-manufacturers-and-pharmacy-benefit-managers" rel="noreferrer noopener">lawsuit</a> targets pharmaceutical companies such as&nbsp;Eli Lilly&nbsp;And Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>)&nbsp;and PBMs, accusing them of engaging in an unlawful scheme to raise insulin prices.
Price Action: At the last check on Wednesday, CVS stock was down 0.51% at $65.56, and UNH stock was 1.17% at $588.36.
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Photo by roberto-sorin for Unsplash

Legal

CVS, UnitedHealth Request FTC Chair Recusal Amid Ongoing Pharmacy Benefit Managers Lawsuit

CLOV

EHTH

ELEV

GOCO

Biden-Harris Administration Proposes Medicare $2 Drug List Model To Lower Prescription Costs; CMS Seeks Feedback On Sample Drug List And Outreach With Voluntary Participation For Part D Sponsors Starting As Early As Jan 2027; Model To Include Drugs For Common Conditions With Periodic Updates Based On New Generics, Clinical Indications, And Pricing Trends

Cigna (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) has outperformed the market over the past 15 years by 6.05% on an annualized basis producing an average annual return of 17.72%. Currently, Cigna has a market capitalization of $95.12 billion. 
Buying $100 In CI: If an investor had bought $100 of CI stock 15 years ago, it would be worth $1,195.86 today based on a price of $340.27 for CI at the time of writing.
<h3>Cigna's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1728414018_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In This Stock 15 Years Ago Would Be Worth $1,200 Today

For dividend-paying companies, maintaining dividend growth is an essential way to demonstrate to investors that a firm is stable and enjoys long-term profitability. Dividend growth is also attractive to investors because it means an increasing passive income stream through stock ownership. Some investors also subscribe to the belief that dividend growth is an important factor in determining a company&#39;s stock price, as in the case of the dividend discount model.
Investors seeking to capitalize on dividend growth might seek out a targeted ETF like the ProShares S&amp;P 500 Dividend Aristocrats ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/nobl#BATS">NOBL</a>), which tracks S&amp;P constituents that have steadily increased dividend payouts for at least 25 years.
<h2>CI: Significant Dividend Growth and Signs of Being Undervalued</h2>
The Cigna Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ci#NYSE">CI</a>) is a health services and insurance business that currently has an annualized dividend payout of $5.60. Though its dividend yield is just 1.65%, considered below ideal by many dividend investors, its dividend growth rate is sky-high. The company enjoys an annualized 3-year dividend growth rate of nearly 400%.
Beyond this significant dividend growth, CI presents a sustainable dividend payout ratio of just under 46%, meaning that its earnings comfortably cover its dividend payouts.
Analysts widely see Cigna shares as undervalued, as the company&#39;s stock has upside potential of almost 16% based on consensus price estimates. Cigna also offers stability found only among blue-chip stocks, as it has its origins in insurance companies dating back 200 hundred years.
<h2>CDW: Solid Dividend Gains Alongside Earnings History</h2>
CDW Corp.&nbsp;is an IT services company that most recently paid a quarterly dividend of 62 cents in August, about double the payout from the same time five years ago and 10 times the payout from a decade ago.
The firm has a strong history of dividend increases and an attractive dividend payout ratio of 30.96%, which should reassure investors that the company is managing its dividend payments effectively and sustainably.
Supporting the growth of CDW&#39;s dividend payments is its strong earnings history, and analysts expect that to continue based on a projected earnings growth rate of 9.0%. The company did recently report a decline in revenues amid a challenging period for the IT industry more broadly, but at the same time it has improved its gross margin to maximize its revenue potential as the industry-wide headwinds ease.
<h2>CTRA: Dividend Performance and Aggressive Buyback</h2>
Coterra Energy Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ctra#NYSE">CTRA</a>) has grown its dividend by about 26% per year for the last three years and now offers an annualized dividend of $0.84 and a fairly competitive dividend yield of 3.39%. Across the energy industry, dividend yields have tended to be strong as share prices have struggled relative to the broader market. Indeed, Coterra shares are down about 6% in the last year.
Like other energy firms, Coterra has been subjected to declining oil prices, leaving its production levels and profit margin to fluctuate. Still, Coterra has outperformed analyst expectations in operational metrics such as cash flow per share and Wall Street sees strong earnings growth of nearly 38% to come.
What helps Coterra stand out to dividend investors is its aggressive share buyback program to return capital to investors. The company completed buybacks totaling well over 100% of free cash flow in the second quarter. While this pace may not be sustainable over the long term, it nonetheless supports the view that Coterra shares are undervalued. Analysts have set an average price target of $32.24, more than 30% above current price levels.
<h2>Looking Beyond Dividend Growth</h2>
Dividend growth is just one important factor to consider when looking at dividend stocks. Investors should also watch for a company&#39;s dividend yield, a measure of how much a firm pays out in dividends relative to its stock price&mdash;a higher dividend yield may mean that the company provides a more enticing prospect for investors looking to maximize their dividend payout compared to how much they spend on a stock, but it can also mean that a company is not reinvesting its profits into its business to fuel expansion. Payout ratio&mdash;a measurement of a company&#39;s dividend relative to its income&mdash;is also revealing. Companies may pay significant dividends but have a negative payout ratio, potentially indicating losses in the latest period, which is typically unsustainable.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/3-dividend-growth-stocks-set-to-supercharge-your-portfolio/">3 Dividend Growth Stocks Set to Supercharge Your Portfolio</a>&quot; first appeared on MarketBeat.

Sector ETFs

Dividends

Price Target

Buybacks

Analyst Ratings

Tech

Insurance

ETFs

CTRA

NOBL

3 Dividend Growth Stocks Set to Supercharge Your Portfolio

Texas Attorney General Ken Paxton has filed a lawsuit against several major insulin manufacturers and pharmacy benefit managers (PBMs), alleging a conspiracy to <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40560002/governments-suing-pharmacy-benefit-managers-over-insulin-prices-have-long-benefited-from-their-r" rel="noreferrer noopener">inflate insulin prices</a>.
The <a target="_blank" href="https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-big-pharma-drug-manufacturers-and-pharmacy-benefit-managers" rel="noreferrer noopener">lawsuit</a> targets pharmaceutical companies such as Eli Lilly And Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) and PBMs, including Cigna Corp's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) Express Scripts and CVS Health Inc's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) CVS Pharmacy, accusing them of engaging in an unlawful scheme to raise insulin prices.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40964870/us-federal-trade-commission-sues-cvs-health-cigna-unitedhealths-pharmacy-benefit-managers-for-infl" rel="noreferrer noopener">US Federal Trade Commission Sues CVS Health, Cigna, UnitedHealth's Pharmacy Benefit Managers For Inflating Insulin Prices</a>.
According to the lawsuit, insulin manufacturers artificially raised the prices of their drugs while paying PBMs a significant, undisclosed portion in return for preferred placement in PBM offerings.
The PBMs allegedly rewarded the manufacturers with the highest list prices by giving their products preferred status while excluding more affordable alternatives.
These insulin drugs, which cost manufacturers less than $2 to produce, were introduced in the late 1990s at $20 per vial. However, prices have now soared to between $300 and $700 per vial.
Over the past decade, some manufacturers have raised insulin prices by as much as 1,000%.
Paxton expressed outrage over the alleged scheme, stating, "This is a disturbing conspiracy by which pharmaceutical companies were intentionally and artificially inflating the price of insulin. Big Pharma insulin manufacturers and PBMs worked together to take advantage of diabetes patients and drive prices as high as they could." He vowed to hold these companies accountable for their actions.
The complaint further claims that while PBMs have publicly positioned themselves as entities working to reduce drug prices and improve treatment access, their actions tell a different story.
The lawsuit argues that the PBMs have colluded with insulin manufacturers to manipulate the market for their financial gain, all at the expense of Texas diabetics and healthcare payors.
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Photo by towfiqu barbhuiya via unsplash

Government

Texas Attorney General Sues Insulin Manufacturers and Pharmacy Benefit Managers Over Price-Fixing Conspiracy That Increased Prices by 1,000%

<a href="https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-big-pharma-drug-manufacturers-and-pharmacy-benefit-managers">https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-big-pharma-drug-manufacturers-and-pharmacy-benefit-managers</a>
Texas Attorney General Ken Paxton sued major insulin manufacturers and pharmacy benefit managers (&quot;PBMs&quot;)&mdash;including Eli Lilly, Express Scripts, CVS Pharmacy, and others&mdash;over a conspiracy to increase prices of insulin.&nbsp;
Through this conspiracy, the manufacturers artificially and willingly raised the prices of insulin then paid a significant, undisclosed portion back to the PBMs as a quid pro quo for inclusion in the PBMs&#39; standard offerings. The PBMs then granted preferred status to the manufacturer whose drug has the highest list price while excluding lower priced drugs. These synthetic insulin drugs, which today cost the manufacturers less than $2 to produce and were originally priced at $20 when released in the late 1990s, now range between $300 and $700. In the last decade alone, the manufacturers who are defendants in the lawsuit have increased the prices of their insulins up to 1,000%. Attorney General Paxton is suing because the insulin pricing scheme violates the Texas Deceptive Trade Practices Act, constitutes unjust enrichment, and represents an unlawful civil conspiracy.
&quot;This is a disturbing conspiracy by which pharmaceutical companies were intentionally and artificially inflating the price of insulin. Big Pharma insulin manufacturers and PBMs worked together to take advantage of diabetes patients and drive prices as high as they could,&quot; said Attorney General Paxton. &quot;These companies acted illegally and unethically to enrich themselves, and we will hold them accountable.&quot;
According to the complaint, &quot;While the PBM Defendants represent that they perform their services on behalf of their clients (including Texas payors) and diabetics to lower drug prices, increase access to affordable drugs, and promote diabetic health, these representations are false. Rather, the PBM Defendants have worked in coordination with the Manufacturer Defendants to distort the market for diabetic treatments to their benefit at the expense of Texas diabetics and payors.&quot;
Liston &amp; Deas, David Nutt &amp; Associates, the Cicala Law Firm, and Foreman Watkins Krutz are serving as outside counsel.

Texas Attor­ney Gen­er­al Ken Pax­ton Sues Big Phar­ma Drug Man­u­fac­tur­ers And Phar­ma­cy Ben­e­fit Man­agers For Con­spir­a­cy

Across the recent three months, 11 analysts have shared their insights on Cigna (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>), expressing a variety of opinions spanning from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">10</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $405.36, a high estimate of $438.00, and a low estimate of $384.00. Marking an increase of 0.79%, the current average surpasses the previous average price target of $402.18. 
<img src="https://www.benzinga.com/files/images/story/2024/1727794839_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
The analysis of recent analyst actions sheds light on the perception of Cigna by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$400.00</td>
<td>$400.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$400.00</td>
<td>$400.00</td>
</tr>
<tr>
<td>David Windley</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Buy</td>
<td>$422.00</td>
<td>$402.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$400.00</td>
<td>$400.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$400.00</td>
<td>$400.00</td>
</tr>
<tr>
<td>Ben Hendrix</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$384.00</td>
<td>$384.00</td>
</tr>
<tr>
<td>Lisa Gill</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$438.00</td>
<td>$435.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$400.00</td>
<td>$400.00</td>
</tr>
<tr>
<td>Scott Fidel</td>
<td>Stephens &amp; Co.</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$410.00</td>
<td>$410.00</td>
</tr>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$405.00</td>
<td>$393.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$400.00</td>
<td>$400.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cigna. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Cigna compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Cigna's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Capture valuable insights into Cigna's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/CI/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Cigna analyst ratings.</a>
<h2>Discovering Cigna: A Closer Look</h2>
Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense, and it recently won a deal with top-tier insurer Centene. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, and the company operates mostly in the US with 18 million US medical members covered as of December 2023.
<h3>Breaking Down Cigna's Financial Performance</h3>
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: Over the 3 months period, Cigna showcased positive performance, achieving a revenue growth rate of 24.4% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.
Net Margin: Cigna's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.56%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Cigna's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.75% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Cigna's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.0% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Cigna's debt-to-equity ratio is below the industry average. With a ratio of 0.77, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>The Significance of Analyst Ratings Explained</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

A Glimpse Into The Expert Outlook On Cigna Through 11 Analysts

Cantor Fitzgerald analyst Sarah James reiterates Cigna (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) with a Overweight and maintains $400 price target.

Reiteration

Cantor Fitzgerald Reiterates Overweight on Cigna, Maintains $400 Price Target

CVS Health Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) is reportedly considering a major restructuring that could involve separating its <a target="_blank" href="https://www.benzinga.com/quote/CVS" rel="noreferrer noopener">retail and insurance businesses</a>.
The move comes as the healthcare services company faces investor pressure and seeks to recover from a challenging financial period.
CVS Health is trading at an EBITDA multiple of 7x, which is significantly lower than key competitors like UnitedHealth Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) and Cigna Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>), which trade at multiples of 14x and 9x, respectively.
This valuation gap underscores CVS's pressure to find a viable path forward amid growing competition and investor concerns.
These talks with financial advisers explore how a potential breakup would work, although no final decisions have been made yet.
Reuters report says the discussions, which remain confidential, include the possibility of unwinding CVS Health's $70 billion acquisition of Aetna in 2017, a deal that significantly expanded the company's insurance capabilities.
Now facing mounting difficulties in its retail and insurance sectors, CVS Health is assessing various strategies, including the potential split of its business units.
If the separation occurs, CVS Health could create two publicly traded companies, but the decision is pending approval from its board of directors.
Another point of debate is whether CVS Health's pharmacy benefits manager (PBM) should remain part of the retail division or be integrated into the insurance segment.
The final structure of any split will depend on internal deliberations, Although the Reuters report adds that CVS Health could still pursue a different approach.
As per a recent WSJ report, CVS Health is set to face renewed pressure as hedge fund&nbsp;Glenview Capital Management, led by founder&nbsp;Larry Robbins, plans to meet top executives, including CEO&nbsp;Karen Lynch, to <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/41091446/cvs-health-in-focus-as-activist-investor-prepares-for-high-level-talks" rel="noreferrer noopener">discuss operational improvements</a>.
The meeting with Glenview comes as part of Robbins' broader strategy to push for change.
In the second quarter, the pharmacy chain reported adjusted EPS of&nbsp;$1.83&nbsp;decreased from&nbsp;$2.21&nbsp;in the prior year, beating the consensus of $1.73.
The fall is primarily due to a decline in the Health Care Benefits segment's operating results, which reflect continued utilization pressure and the unfavorable impact of the company's Medicare Advantage star ratings for the 2024 payment year within&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40220306/cvs-health-reports-mixed-q2-earnings-lowers-2024-outlook-reshuffles-segment-management" rel="noreferrer noopener">the Medicare product line</a>.
CVS Health revised its adjusted EPS guidance to $6.40-$6.65&nbsp;from at least&nbsp;$7.00 versus the consensus of $6.98, reflecting continued pressure in the Health Care Benefits segment.
CVS Health decided to make leadership changes based on the current performance and outlook for the Health Care Benefits segment.&nbsp;
Brian Kane&nbsp;quit, and Karen Lynch,&nbsp;the CEO, assumed direct leadership of the Health Care Benefits segment.
Karen and Tom Cowhey, CVS Health's CFO, oversee the business's day-to-day management.
Price Action: At last check Tuesday, CVS stock was up 2.21% at $64.27 during the premarket session.
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Image via Shutterstock

CVS Health Mulls Split Of Retail And Insurance Divisions To Address Financial Challenges: Report

Cigna Says Medicare Annual Enrollment Period Begins Oct. 15 And Continues Through Dec. 7

CVS Health Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) is set to face renewed pressure as hedge fund Glenview Capital Management, led by founder Larry Robbins, plans to meet top executives, including CEO Karen Lynch, to discuss operational improvements.
The meeting with Glenview comes as part of Robbins&#8217; broader strategy to push for change, the Wall Street Journal reports.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/08/40437498/pharmacy-chains-like-cvs-health-walgreens-boots-alliance-confront-shifting-consumer-habits-and-pro" rel="noreferrer noopener">Pharmacy Chains Like CVS Health, Walgreens Boots Alliance Confront Shifting Consumer Habits And Profit Pressures</a>.
Robbins, who has built a substantial $700 million position in CVS, sees potential for the company to revitalize its struggling business without resorting to a breakup.
Robbins is expected to propose cost-cutting and restructuring strategies but will not push for a breakup of CVS. Another hedge fund has also built a notable position in the company, hinting at further pressure from investors.
CVS, one of the largest healthcare companies in the U.S., has seen its stock tumble 24% year-to-date amid multiple earnings downgrades.
In the second quarter, the pharmacy chain reported adjusted EPS of&nbsp;$1.83&nbsp;decreased from&nbsp;$2.21&nbsp;in the prior year, beating the consensus of $1.73. The fall is primarily due to a decline in the Health Care Benefits segment&#8217;s operating results, which reflect continued utilization pressure and the unfavorable impact of the company&#8217;s Medicare Advantage star ratings for the 2024 payment year within <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40220306/cvs-health-reports-mixed-q2-earnings-lowers-2024-outlook-reshuffles-segment-management" rel="noreferrer noopener">the Medicare product line</a>.
CVS Health revised its adjusted EPS guidance to $6.40-$6.65&nbsp;from at least&nbsp;$7.00 versus the consensus of $6.98, reflecting continued pressure in the Health Care Benefits segment.
The Wall Street report <a target="_blank" href="https://www.wsj.com/health/healthcare/glenview-capital-plans-push-for-changes-at-cvs-5df8aa8a?mod=latest_headlines" rel="noreferrer noopener">adds</a> that CVS had heavily invested in attracting seniors to its Aetna Medicare plans, but the move backfired, squeezing margins. The company is now revising its Medicare approach for 2025 to address these issues.
CVS Health decided to make leadership changes based on the current performance and outlook for the Health Care Benefits segment.&nbsp;
Brian Kane&nbsp;quit, and Karen Lynch,&nbsp;the CEO, assumed direct leadership of the Health Care Benefits segment.
Karen and Tom Cowhey, CVS Health&#8217;s CFO, oversee the business&#8217;s day-to-day management.
Recently, the Federal Trade Commission (FTC) filed a formal complaint against three major pharmacy benefit managers (PBMs)—CVS Health&#8217;s Caremark,&nbsp;Cigna Corp&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) Express Scripts, and&nbsp;UnitedHealth Group Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) Optum—for allegedly engaging in unfair and anti-competitive practices that have inflated the list&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40964870/us-federal-trade-commission-sues-cvs-health-cigna-unitedhealths-pharmacy-benefit-managers-for-infl" rel="noreferrer noopener">price of insulin medications</a>.
The FTC has also highlighted significant concerns regarding consolidating pharmacies and health insurance companies, focusing on the influence of a few dominant PBMs <a target="_blank" href="https://www.benzinga.com/government/24/07/39695378/ftc-investigation-uncovers-anti-competitive-practices-by-handful-of-pharmacy-benefit-managers-includ" rel="noreferrer noopener">on prescription drug prices</a>.
Price Action: CVS stock is up 3.27% at $63.39 during the premarket session at last check on Monday.
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Our Top 10 Dividend Growth Stocks - October 2024

Investors need to recognize that this time of year not only are more 'shakeouts' than we've seen likely; but tax-selling and shuffling (rearranging the Titanic deckchairs to some degree) is to be expected, as money managers try to position for 2025.

Market Briefing For Monday, Oct 21

In a report released today, Steve Baxter from Wells Fargo maintained a Hold rating on Cigna (CI – Research Report), with a price target of $355.00....

Cautious Hold Recommendation on Cigna Amid Uncertainty Over HUM Deal

TD Cowen analyst Ryan Langston maintained a Buy rating on Cigna (CI – Research Report) today and set a price target of $400.00. The company's share...

TD Cowen Sticks to Its Buy Rating for Cigna (CI)

Check out this morning's top movers from around Wall Street, compiled by The Fly. HIGHER – Siyata Mobile (SYTA) up 114% after announcing its next-g...

Morning Movers: Siyata skyrockets after radio handset availability on T-Mobile

CTAS

HLNE

MPWR

NFLX

ROAD

SASR

SAVE

SYTA

TMUS

TTEK

WING

Press Releases

The Cigna Group's "Community Vitality Project" Donates $75,000 to Nonprofits through Program Encouraging Fitness and Community Engagement

Cigna Healthcare Makes Virtual Care Even Easier and More Convenient with New E-Treatment Option from MDLIVE

The Cigna Group Announces Appearance at the Bernstein Healthcare 1:1 Forum

Express Scripts Sues FTC, Demands Withdrawal of PBM Report

The Cigna Group and Business Roundtable Host Workforce Mental Health Summit

Express Scripts Comments on FTC's Reckless Insulin Action

The Cigna Group Issues 2024 Vitality In America Report, Revealing Increased Optimism Among Young Americans and Offering Insights on Workforce Health and Engagement

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