In a regulatory filing, Magellan Health (MGLN -2.6%) discloses that it has mutually agreed to an early termination (effective today) of most of the services it provided under a pharmacy benefit management (PBM) contract with an unnamed client. The company agreed to end the contract earlier than the formal end date of December 31 after the customer entered into a strategic partnership with another firm under which they intend to consolidate services under the partner's preferred PBM vendor. The customer represents 8.5% of Magellan's revenues.
The company is in discussions with the customer related to specialty drug formulary services under the contract as well as new specialty drug management services.
Management says the action will not impact its 2016 guidance.