Cigna Raises EPS Growth Target to 10%-14%

The Cigna Group has announced a significant increase in its long-term average annual adjusted EPS growth target, raising it to 10%-14%. The company has also affirmed its 2024 adjusted EPS guidance of at least $28.25. These announcements were made as part of the company's 2024 Investor Day, where it outlined its growth and innovation strategies.

In addition to the financial targets, the company also unveiled several innovative solutions aimed at addressing some of the greatest challenges in healthcare. These include the industry's first financial guarantee for GLP-1s through EncircleRx, a new mental health practice by Evernorth Behavioral Health, and plans to make a Humira biosimilar available for $0 out of pocket to eligible patients of its specialty pharmacy, Accredo. These initiatives are designed to manage the rising costs of treating cardiodiabesity, expand timely access to quality in-network therapy, and drive significant long-term affordability and access, respectively.

The company's president of Express Scripts and Evernorth Care Management, Adam Kautzner, highlighted that the financial guarantee for GLP-1s offers employers and health plans greater predictability and control, while the new mental health practice aims to provide value-based, outcome-driven care through a simpler care delivery experience. Meanwhile, Evernorth Health Services plans to have the Humira biosimilar available at $0 out of pocket for eligible patients, a move that is expected to drive significant savings for health plans and patients.

These announcements reflect the company's commitment to creating a better future built on the vitality of every individual and every community. With approximately 183 million customer relationships around the world, The Cigna Group continues to challenge itself to partner and innovate solutions for better health.

Today the company's shares have moved 0.9% to a price of $342.72. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.