Canada Launches Probe Into Cigna’s Express Scripts Over Anti-Competitive Conduct Allegations – But Retail’s Unmoved
Canada’s Competition Bureau is investigating allegations of conduct that can prevent or limit competition in the pharmacy retail market, including “patient steering” and “margin squeezing.”
FollowShares of Cigna Group (CI) traded marginally lower on Friday morning after Canada’s Competition Bureau announced an investigation into Express Scripts Canada over alleged anti-competitive conduct that could prevent or limit competition in the country's drug retail market.
Express Scripts Canada is a unit of US-based Express Scripts which is owned by the Cigna Group.
It provides prescription drug claim processing services and other services for insurance providers and pharmacists, and operates four mail-order pharmacies across Canada, except for Quebec.
The Competition Bureau said it has obtained a court order from the Federal Court to advance the investigation.
The order requires Express Scripts Canada to produce records, written information, and oral testimony relevant to the Bureau’s investigation.
The Bureau is investigating allegations of conduct that can prevent or limit competition in the pharmacy retail market, including “patient steering” and “margin squeezing.”
Allegations include inducing patients to use Express Scripts Canada-owned or associated pharmacies instead of their pharmacy of choice and attempts to reduce the margin of its retail pharmacy competitors by requiring a costly and burdensome audit process and other means.
The bureau added that there is no conclusion of wrongdoing at present.
On Stocktwits, retail sentiment around Cigna stayed unmoved within ‘extremely bearish’ territory over the past 24 hours, accompanied by low message volume.
CI's Sentiment Meter and Message Volume as of 11:15 a.m. ET on April 11, 2025 | Source: Stocktwits
Truist on Friday raised its price target on Cigna to $385 from $375 while keeping a ‘Buy’ rating on the shares, as per TheFly, citing a positive outlook for the broader healthcare services sector.
CI stock is up by nearly 19% year-to-date but down by about 7% over the past 12 months.
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