Magellan Health lost Horizon contract in New Jersey, says Citigroup Citigroup notes that this morning, Magellan Health announced loss of its contract with Horizon Blue Cross Blue Shield in New Jersey. Citi estimates contract will generate $193M in revenue in 2012, down from a peak of $243M in 2010. The firm points out the current contract does not expire until the end of 2013, so Magellan's earnings won't be pressured until 2014. Citi lowered its 2014 earnings estimate for Magellan to $4.35 from $5.00, but keeps a Buy rating on the stock with a $58 price target.
Leerink healthcare services analyst holds an analyst/industry conference call Healthcare Services Analyst Gupte discusses Sustainable Growth Rate (SGR) and the proposed pay-fors and implications For Healthcare Services on an Analyst/Industry conference call to be held on March 20 at 11 am.