Horizon Pharma fires back at Express Scripts on business practices

Ireland-incorporated Horizon Pharma (Nasdaq: HZNP) today commented on Express Scripts' business practices. In light of Express Scripts' actions, Horizon says it will evaluate all legal and other remedies and options. Shares of Horizon were down 14.7% to $19.10 shortly before the opening bell.

Express Scripts (Nasdaq: ESRX), the USA’s largest pharmacy-benefit manager, said on Tuesday it had terminated Linden Care pharmacy from its network after it “found that it predominantly dispensed Horizon prescription drugs” and failed to fulfill Express’ pharmacy network agreement. It also said it was evaluating several other pharmacies that it said appeared to dispense mostly Horizon medications. Express said that it had filed suit against Horizon, under seal, in a Delaware court.

Timothy Walbert, chairman, president and chief executive of Horizon Pharma responded, saying: "Express Scripts is not only a pharmacy benefit manager that has significant control over prescriptions that flow to specialty pharmacies, it also operates its own mail-order pharmacy and thus is a direct competitor of small, independent specialty pharmacies throughout the United States. This competitive role, in our view, creates a clear conflict of interest, as Express Scripts stands as both a pharmacy's overseer and competitor. In fact, Express Scripts' specialty pharmacy, Accredo Health Group is the largest in the United States with more than 28% market share.”