What You Should Know:
– Evernorth Health Services, a subsidiary of The Cigna Group, has announced a $3.5B investment in Shields Health Solutions, a specialty pharmacy management company.
– The investment coincides with Shields’ establishment as a private standalone company following its acquisition by Sycamore Partners, a private equity firm.
– Evernorth’s investment is in the form of preferred stock and is not expected to have a material impact on The Cigna Group’s 2025 adjusted EPS guidance.
Expanding Support for Specialty Care
According to David M. Cordani, Chairman and CEO of The Cigna Group, the demand for specialty medications is growing at an accelerated pace. He stated that Evernorth is uniquely positioned to serve the “rapidly expanding number of individuals living with complex and chronic conditions and the doctors who care for them”. Cordani noted that investing in Shields aligns with Evernorth’s commitment to delivering exceptional care across all healthcare settings, including the home, physician’s office, clinic, and hospital.
Shields helps hospitals and health systems develop and manage their own specialty pharmacies and partners with more than 80 health systems, which are comprised of over 1,000 hospitals and clinics across nearly all 50 states. This investment allows Evernorth to seek more opportunities to support patients and providers and enhance continuity of care across specialty health care settings. It also provides the option for additional investment in Shields over time.
Greenhill, an affiliate of Mizuho, served as the sole financial advisor to Evernorth during this transaction. Wachtell, Lipton, Rosen & Katz served as corporate legal counsel and Holland & Knight LLP served as regulatory counsel.
Michael Ham, Shields’ Chief Executive Officer, said, “Our team at Shields has been proud to deliver exceptional clinical, financial and operational outcomes for our health system partners and their patients served through our differentiated care model. Both Sycamore’s acquisition of Shields, and Evernorth’s support for the transaction, demonstrate clear validation of our successful health system-focused specialty pharmacy strategy and patient-focused care model.”
