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Fly News Breaks for April 25, 2017
ESRX, ANTM
Apr 25, 2017 | 08:28 EDT
After Express Scripts (ESRX) divulged that it expects Anthem (ANTM) to not renew its contract after 2019 and the PBM stated that it had obtained $2.25B of EBITDA from the deal in 2016, Bernstein analyst Robin Qiu estimates that terminating the deal will boost Anthem's pre-tax profits by $1.6B. Based on normal historical valuations, Anthem's stock would be worth $221 after terminating the deal, estimated the analyst, who kept a $202 price target and an Outperform rating on Anthem.
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