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SummaryCompaniesExpects operating income in Evernorth unit to be pressuredReaffirms 2025 profit forecastShares fall 14% Oct 30 (Reuters) - Cigna Group (CI.N), opens new tab warned of margin pressure over the next two years as its pharmacy benefit management business switches some customers to a new model that does not include the after-market discounts known as rebates, sending the insurer's shares more than 14% lower in early trading on Thursday. Earlier this week, the company said it will end prescription drug rebates in some types of health plans in 2027 and offer up-front discounts at its pharmacies, a shift it said would lower costs for patients. Advertisement · Scroll to continueReport Ad "Given the significant financial and affordability pressures for partners operating heavily in government programs, we have proactively improved the economic terms of the contracts for the benefit of these long term strategic clients," said CEO David Cordani. "As a result of these factors, we expect margin pressure within our pharmacy benefit service segment over the next two years." The clients include Prime Therapeutics, the U.S. Department of Defense and Centene (CNC.N), opens new tab. Cigna also expects operating income in its Evernorth unit, which houses its pharmacy benefit manager, to be down in 2026. The comments clouded the company's third-quarter profit beat, which was driven by Evernorth strength. Advertisement · Scroll to continue It earned a quarterly adjusted profit per share of $7.83, beating estimates of $7.65 per share, according to LSEG data. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2127676363 About ConnatixV2127676363 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Sriparna Roy and Sneha S K in Bengaluru, Amina Niasse in New York; Editing by Devika Syamnaath Purchase Licensing Rights Sriparna RoyThomson ReutersSriparna reports on pharmaceutical companies and healthcare in the United States. She has a master's degree in English literature and post graduate diploma in broadcast journalism. EmailXLinkedin
