Express Scripts Holding Co. is working on a plan to "transform" the company that is expected to deliver annual savings of as much as $600 million.
"We are currently developing a multi-year, enterprise-wide initiative to transform our organization by the end of 2021," Eric Slusser, chief financial officer, said in the company's second quarter earnings release.
Slusser said Express Scripts expects the initiative to deliver savings of $550 million to $600 million annually by 2021.
"We are investing to deliver an improved experience with better engagement and greater efficiency, which will evolve the way we do business with patients, providers and our clients," Slusser said.
Express Scripts reported second quarter net income of $801.8 million on revenue of $25.3 billion, up from the $720.7 million income on $25.2 billion in revenue it reported for the second quarter of 2016.
The company reiterated that it does not believe its contract with Anthem, its largest commercial client, will be renewed. Express Scripts realized revenue and operating income of $52.6 million related to the Anthem contract in the second quarter of 2017.
Anthem's contract with Express Scripts expires at the end of 2019, and Express Scripts previously said that it believes the company intends to move its business when the contract expires. Express Scripts and Anthem have been engaged in a legal battle over drug pricing. Anthem sued Express Scripts in March 2016, alleging Express Scripts’ drug pricing was higher than competitive benchmark pricing and seeking damages of about $15 billion. Express Scripts responded by denying Anthem’s claims and alleging that Anthem did not negotiate in good faith.
Angela Mueller covers health care.