Express Scripts CEO George Paz to Retire

Yesterday, Express Scripts (ESRX) announced that its CEO, George Paz, will retire in May. The company’s president, Tim Wentworth, will replace him.

Wall Street is familiar with Wentworth, and the executive is “well positioned” for the industry’s challenges due to his experience with both specialty drugs and in sales, BMO Capital Markets analyst Jennifer Lynch said in a research note.

Leerink analyst David Larsen said in a separate note that Paz’s retirement announcement came earlier than expected, but Wentworth is “well suited” to lead the company.

“In our view the CEO change increases the likelihood that (Express Scripts) will consider a large strategic deal, and we believe investors will view this leadership change announcement favorably,” Larsen wrote.

Paz has done an excellent job running ESRX. He’ll still be there as non-exec Chairman. The stock initially rose but has now slipped back into the red. I assume traders are guessing whether the company has a greater likelihood of being bought out under Wentworth.

Posted by on September 10th, 2015 at 10:28 am


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