Magellan Health Provides 2017 Financial Guidance

Magellan Health, Inc. (NASDAQ:MGLN) today announced that in 2017, it expects to generate net revenue in the range of $5.8 billion to $6.1 billion, and net income in the range of $90 million to $114 million, which translates into diluted earnings per share (EPS) in the range of $3.80 to $4.81. Adjusted net income * for 2017 is expected to be in the range of $123 million to $145 million, which equates to adjusted EPS * in the range of $5.19 to $6.12, and segment profit * is expected to be in the range of $329 million to $349 million. The company also expects cash flow from operations in the range of $186 million to $220 million. For 2017, fully diluted shares are assumed to be 23.7 million, inclusive of share repurchases through November 18, 2016.

With respect to 2016, the company confirmed its guidance, which was most recently updated earlier in November.

"Over the past three years, we've discussed our goal of becoming a company which consistently produces top and bottom line growth, and improves health outcomes and affordability for the members and customers we serve. We have made much progress toward this objective, and as a result, we are well positioned for sustainable long-term growth," said Barry M. Smith, chairman and chief executive officer of Magellan Health. "Through the successful execution of our strategy, our 2017 guidance represents the third consecutive year of segment profit growth for Magellan.

"We recently entered into an agreement to acquire Veridicus, a privately held pharmacy benefit manager (PBM) with a unique set of clinical services and capabilities. Veridicus leverages proprietary analytics and clinical software that integrates pharmacy, medical and lab data to drive targeted interventions, resulting in better health outcomes and lower costs for complex populations. Veridicus serves approximately 225,000 lives, the majority under a long-term contract with a trust administering benefits for participating employers."

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