Magellan Health, Inc reported second-quarter 2021 adjusted earnings per share of 11 cents per share, which plunged 86.9% year over year due to elevated expenses. Shares of the company had remained almost unchanged. Magellan said it expects its merger with Centene to close during the second half of this year.
- Revenues: Revenues at Magellan Health improved 11% year over year to $1.2 billion in the quarter under review. The improvement can be attributed to contributions by the Healthcare segment. However, the upside was partly offset by a slight decline across the company’s Pharmacy Management unit resulting from its January exit of Medicare Part D as a plan sponsor in 2021.
- Profits: Healthcare segment profit amounted to $29.6 million, which declined 51.4% year over year. The downside was due to the recovery of utilization patterns to pre-pandemic levels and higher corporate investments.
- Figures: Pharmacy Management segment profit of $13.2 million remained unchanged from the prior-year quarter’s figure. The segment benefited from strength across specialty and government businesses, partly offset by rising in corporate investments.
- Reports: Magellan Health exited the second quarter with cash and cash equivalents of $678.5 million, which slumped 40.7% from the 2020-end level. As of Jun 30, 2021, the company’s total assets of $3.2 billion fell 4.2% from the figure at 2020 end. Total stockholder’s equity totaled $1.9 billion, which increased 2.9% from the figure as of Dec 31, 2020.
- Stats: Total costs, expenses, and other income increased 12.8% year over year to $1.2 billion primarily due to higher cost of care, and direct service costs, and other operating expenses. The merger agreement of Magellan Health with Centene, which was announced on Jan 4, 2021, is anticipated to conclude in the second half of 2021.