WellCare Health Plans (WCG) said in a Form 8-K filing that it has signed an asset purchase agreement with Aetna, Inc. (AET) to acquire the latter’s entire standalone Medicare Part D prescription drug plan business, effective Dec. 31. Shares of WellCare climbed almost 2% in the pre-market.
The unit had about 2.2 million members as of June 30, the filing noted. As per the deal, Aetna will provide administrative services to, and retain the financial risk of, the Aetna Part D business through 2019.
As a result, WellCare said that it did not expect to recognize any revenue from the business or (for) it to affect the company’s operational results until 2020.
The transaction is being funded from the available cash on hand, the statement added, without detailing the purchasing price.
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