Tim Wentworth, Evernorth CEO, joins Yahoo Finance’s The First Trade with Alexis Christoforous and Brian Sozzi to discuss Cigna's launch of its new health services brand Evernorth, which he will lead, how it compares to other offerings and its potential in the overall market.
BRIAN SOZZI: All right, health services companies Cigna is out with a new brand today, Evernorth. The brand aims to deliver innovation and flexible solutions. Joining us now is Tim Wentworth, CEO of Evernorth. And he is here with us.
Tim, good to speak with you again. So what are some of the key hallmarks here? What are you hoping to achieve here?
TIM WENTWORTH: Yeah, thanks, Brian. Good morning. Well, what we already are achieving, frankly, is at a scale level to reduce the fragmentation and improve the set of services that can be provided to health plans, employers, governments, and ultimately directly to patients in our country. And so we took the assets that we have collected over the last several years with the merger with Cigna and Express Scripts, as well as a number of other things, and put together this Evernorth brand.
And I think the really powerful part of it is that 90% of what we do, over $90 billion of our revenue, day one, comes from outside of our four walls, comes from already working with large health plans, large employers, governments to help reduce fragmentation and create affordability, simplicity, and predictability in their health care. And so we're built to build off of that. And the market has responded really well already.
I'm talking to customers today. And the exact quote from the head of the Foreign Services Benefits Protection Association was "I see this as a win, providing the ability to address health care challenges and bring together solutions from a fragmented system." And I she got it dead right.
ALEXIS CHRISTOFOROUS: Hey, Tim, what's the advantage here of creating a new brand that, in some ways, seems to be competing with its own brand? I mean, what is the advantage there for the consumer?
TIM WENTWORTH: The advantage for the consumer is that we're able to bring a collection of assets together and take a consumer-focused and pair-focused approach to how we coordinate them or partner, not only with our own platforms, but even with others. And so [AUDIO OUT] the largest group of employers, Fortune 100 employers who come together to share benefits ideas and policy and so forth. And their quote was exactly there's a need in the market for this, because what we see from a patient or from a payer standpoint is a very fragmented system. And we are built and have already proven that we can coordinate and play well with others, be a partner of choice.
If you look four years ago, Express Scripts was working with Livango, for example, to integrate that experience for our patients. So that if you were a patient with diabetes on Livango or on LifeScan, which is a J&J product, we were able to take the information that was being gathered by them and inform a better, more preemptive practice of pharmacy by getting that information into our pharmacist's hands real time, thus creating a seamless ecosystem for that patient. That's what we're built to do and what you'll see us doing across a number of things. Today we're launching a fertility solution, for example. You can go to the website familypathbenefits.com to see how integrated that approach is compared to the point solutions you typically find in the market for fertility.
BRIAN SOZZI: Tim, full disclosure here-- when I initially saw this release, my first thought was this is Cigna saying it's not getting enough respect in the market for the Express Scripts assets that they acquired for $54 billion, coming up on the two-year anniversary of the deal closing. Cigna's market cap's about $62 billion. Is this your way to signal that to the market that the market doesn't understand the company?
TIM WENTWORTH: Listen, we think that the good news is our customers understand it really well. And again, my conversations today are just re-validating that for me. I think the market's going to figure out very quickly that we are a growth engine inside Cigna. We have delivered since the merger, quarter after quarter, growth on every measure. You saw us sign significantly large trusted relationships with large group of Blue's plans, for example, to manage their supply chain, a really great starting point to bring other services potentially to those plans.
And so I think the market is going to watch. We knew that. But what they should see today is an incredibly strong, externally focused world-class set of assets. I mean, Accredo is the most world-class specialty pharmacy. And the pharma companies would tell you that. Express Scripts, massively scaled and delivering superb service. EviCORE, great on the medical management side.
I think what we've got to help the market see is that the combination of those assets is not 1 plus 1 plus 1 equaling 3, but equally 5 or 6. And just the products we're launching today off the Evernorth brand, I think we'll begin to give the market a better perspective on how well we can coordinate solutions that the market, frankly, does not have today and desperately needs.
BRIAN SOZZI: I would agree with you. The assets under this umbrella are very impressive. I mean, do you think-- is this a precursor to someday down the line, Evernorth being a publicly traded company on a standalone basis?
TIM WENTWORTH: No, I wouldn't say that. I think that there's a real advantage for us to having a large development partner as one of our customers, that being our owner, Cigna. But no, we're not looking to that at all. We're looking to ensure that what we can do for all of the health care ecosystem, including Cigna, is going to be something that is not available today.
So we're excited about that. This is not about putting us separate. This is actually about, again, focus and focusing on the payer market.
BRIAN SOZZI: All right, let's leave it there. Tim Wentworth, CEO of Evernorth, always good to speak with you.
TIM WENTWORTH: Brian, thanks much.