Key Developments For Magellan Health Services, Inc.
Magellan Health Services, Inc. (MGLN.O) (Nasdaq)
Magellan Health Services Raises FY 2009 EPS Guidance
Magellan Health Services raised its fiscal 2009 guidance and expects segment profit in the range of $207.5-$217.5 million, net income of $85.3 to $95.5 million and earnings per share (EPS) of $2.41-$2.70, including projected results for First Health Services Corporation. According to Reuters Estimates, analysts were expecting the Company to report EPS of $2.30 for fiscal 2009.
Coventry Health Care, Inc. Completes Sale of First Health Services Corporation Subsidiary to Magellan Health Services, Inc.
Coventry Health Care, Inc. announced that it has completed its previously announced divestiture of First Health Services Corporation (FHSC) to Magellan Health Services, Inc. The terms of the transaction were not disclosed.
Magellan Health Services Reaffirms FY 2009 Earnings Guidance; Authorizes $100 Million Share Repurchase; Announces Appointment Of President
Magellan Health Services reaffirmed that it expects to end fiscal 2009 within its previously provided ranges of segment profit of $197.5-$217.5 million and earnings per share of $2.04-$2.59, including projected results for First Health Services Corporation. According to Reuters Estimates, analysts were expecting the Company to report EPS of $2.23 for fiscal 2009. The Company announced that its Board of Directors authorized a share repurchase program under which the Company may purchase up to $100 million of its outstanding common stock. The Company also announced that Karen S. Rohan has been named President of the Company, effective August 1, 2009.
Magellan Health Services Announces Acquisition Of First Health Services Corporation From Coventry Health Care, Inc
Magellan Health Services announced that it has signed a definitive agreement to acquire First Health Services Corporation, a subsidiary of Coventry Health Care, Inc. that provides pharmacy benefits administration and other services for Medicaid programs. Under the terms of the purchase agreement, Magellan will pay Coventry $110 million in cash for the stock of First Health Services as well as certain other assets related to the operation of the First Health Services business. The transaction is expected to close in the third quarter of 2009. The Company will fund the acquisition with cash on hand. First Health Services will become a wholly owned subsidiary of Magellan. In addition to the definitive agreement for the purchase of First Health Services, Magellan has entered into three year agreements with Coventry to manage radiology services on a risk basis and provide the Company’s new oncology management services. Both parties have agreed that the acquisition of First Health Services and the service agreements are each contingent upon the completion of the other, in order to ensure that incentives for the completion of the transactions are aligned. Under the radiology agreement, Magellan will manage advanced diagnostic imaging services, including cardiac diagnostic testing, in five Coventry markets, with a planned implementation of two markets in the fourth quarter of 2009 and three markets in early 2010.
Magellan Health Services Reaffirms FY 2009 Earnings Guidance
Magellan Health Services announced that it has reaffirmed its fiscal 2009 guidance. The Company expects net income in the range of $73.4 million and $93.7 million, earnings per share (EPS) of $1.99 to $2.54. According to Reuters Estimates, analysts were expecting the Company to report net profit of $82.62 million, EPS of $2.27 for fiscal 2009.
